WazirX Eyes Exchange Revival and DEX Launch After $235M Hack

Key Takeaways

• WazirX proposes launching a DEX after its reimbursement claims are processed.
• The Indian crypto exchange views the DEX launch as a way to recover lost funds but faces pushback from the crypto community.
• Customers demand asset recovery first, criticizing the timing of the proposed DEX launch.

WazirX, an Indian crypto exchange that was hacked for $235 million in July 2024, is working to reopen its platform and compensate affected users.

The exchange paused its services following the hack and is now focused on restructuring to refund remaining customer funds under a court order in Singapore.

Plans for DEX Launch Amid Recovery Efforts

In a recent post on X, WazirX proposed  reopening its exchange and launching a decentralized exchange platform (DEX) once the court-approved recovery plan is finalized.

This marks the latest effort by the platform to rebuild after the hack, but it is not the first time WazirX has suggested a DEX launch.

Earlier in November 2024, CEO Nischal Shetty suggested that the DEX could help recover lost user assets by generating new revenue, which would be used to compensate those affected by the hack.

However, the idea was met with significant resistance from the crypto community, with many users demanding that the exchange prioritize returning their funds first.

The  DEX has been under development for over three years and was first introduced by Shetty in December 2021 under the name Shardeum. Despite years of planning, the product has yet to launch.

Controversy Surrounding WazirX’s Recovery Efforts

WazirX’s recovery efforts have been complicated by accusations of dishonesty and poor communication.  

The exchange has faced criticism for allegedly manipulating customers into consenting to changes, shifting funds overseas, and placing blame on Binance for delays in the reimbursement process.

Despite these issues, the exchange insists it is close to finalizing a reimbursement plan, which is awaiting approval from the Singapore court.