Indian crypto exchange WazirX faces mounting challenges after the Delhi High Court ordered a fresh investigation into the platform on Dec. 18 — the same day Binance announced it would delist the exchange’s native token WRX.

The probe, spurred by allegations of a prior hack and concerns over financial irregularities, signals intensifying scrutiny on the beleaguered exchange.

The court’s directive came after Advocate Jaivir Bains filed a petition calling for criminal proceedings against WazirX in connection with a July 2024 breach that resulted in a loss of $235 million in crypto.

Initial reports from Delhi police concluded that no criminal case could be substantiated, but Justice Sanjeev Narula rejected the findings and required an updated status report by February 2025.

The investigation highlights lingering doubts about WazirX’s operational integrity, particularly in light of allegations that a North Korean hacking group orchestrated the breach. Despite a partial recovery effort led by cybersecurity firm Cyfirma, the exchange admitted that 43% of customer funds remain unrecoverable.

Binance delisting

The legal development comes as Binance announced it would delist WRX, citing a failure to meet compliance standards.

The delisting, effective Dec. 25, triggered a 59% drop in WRX’s value, reflecting eroded investor confidence. Binance has also denied ownership of WazirX, alleging the exchange is controlled by Zanmai Labs, which operates under the jurisdiction of India’s Financial Intelligence Unit.

While WazirX attempts to regain stability, including plans to relaunch its platform and introduce a decentralized exchange, critics have highlighted deficiencies in its crisis management and transparency. “The court’s move to demand a fresh probe reflects the severity of the allegations and raises questions about the future of WazirX,” said a legal analyst familiar with the case.

WazirX has pledged to rebuild with enhanced services, but the combination of regulatory scrutiny, financial losses, and market instability poses a formidable challenge for the once-prominent exchange.

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