- WazirX is moving assets between cold wallets to secure user funds and prepare for final distribution.
- A Binance-linked wallet recently sent $200 million to a WazirX wallet, sparking speculation that Binance may assist with repayment.
After months of silence following a massive $230 million hack in July 2024, WazirX, one of India’s leading cryptocurrency exchanges, has caught the attention of the crypto community with unusual wallet activity. According to the on-chain data, funds have been moving between wallets, and buying activity involving tokens like ETH, SHIB, PEPE, and LINK has raised speculation about a potential recovery plan.
WazirX clarified that the activity is part of an “asset rebalancing” process. According to the exchange, this temporary centralization is necessary to secure assets and prepare for their final distribution. Further, WazirX assured users that all cold wallet details and token holdings will be made public once this process is complete.
However, the recent surge in on-chain activity has fueled rumors that Binance, the world’s largest cryptocurrency exchange, might be stepping in to assist with reimbursements. An on-chain analyst pointed out that a WazirX wallet that consolidated unaffected user funds recently received $200 million worth of crypto tokens from a Binance-linked wallet. The amounts closely align with the stolen funds—currently, the wallet holds over $201 million.
But previously Binance denied its involvement in the WazirX hack and creditor repayment and asked WazirX to take full responsibility.
Investigation Updates: From Hacks to Recovery
This development comes 5 months after WazirX suffered a $230 million hack in July 2024, an attack initially suspected to be linked to the notorious Lazarus Group. While some analysts speculated it could have been an inside job, investigations later revealed that the breach was executed through a fake account sold via Telegram. Importantly, the Indian Cyber Crime Coordination Centre confirmed that WazirX’s internal systems were uncompromised.
In November, Delhi Police arrested a suspect from Bengal linked to the hack, marking significant progress in the case. Despite this, reports suggest that most of the stolen funds laundered using Tornado Cash, complicating recovery efforts.
WazirX has also taken steps to resolve matters legally, filing with the Singapore High Court to convene a creditors’ meeting. The crypto exchange sees this move as pivotal for finalizing a recovery plan. If approved, the exchange intends to distribute recovered funds to affected users within ten working days.
With these developments, optimism is growing within the crypto community. The WazirX token has seen a price surge, mirroring trends seen with other troubled platforms as they progress toward recovery.
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