WazirX (WRX) Dumps 55% After Binance Delisting Update, Sparks Debate Over Token Holders

WRX, the native asset of the crypto exchange WazirX, fell by 55% on Wednesday after the world’s largest digital asset trading platform, Binance, announced that it would be delisted on December 25. Notably, Binance was once affiliated with the exchange, but their relationship has weakened over the past two years.

Market participants are wondering which traders were still holding onto the asset because WazirX has made headlines this year for negative reasons, and investors are expected to have sold off their holdings to avoid accruing losses.

What Happened to WazirX?

WazirX was the largest crypto exchange in India until cybercriminals breached one of its multisig wallets in July 2024 and stole $234 million worth of cryptocurrencies. The stolen assets included Shiba Inu (SHIB), ether (ETH), Polygon (MATIC), and Pepe (PEPE).

Although the crypto exchange offered a $23 million bounty on information leading to the identification and prosecution of the hackers, the funds were not recovered. On-chain analytics entities eventually disclosed that the attackers swapped all the funds to ETH and laundered them through the crypto mixer Tornado Cash.

Two months later, a Singaporean court granted WazirX a four-month moratorium to navigate the financial crisis. While the exchange was still involved in this process by press time, there is uncertainty surrounding the redistribution of funds to users affected by the hack. Worse still, rumors exist that WazirX founders and executive members have secretly moved funds to other major exchanges.

A Botched Relationship With Binance

Prior to January 2023, Binance invested in WazirX and even provided wallet services to the Indian platform. However, in February 2023, Binance gave WazirX an ultimatum to withdraw all customer funds stored in its wallets after the Indian company’s operator, Zanmai, refused to debunk misleading claims about Binance’s role in the exchange.  

This saga extended to September 2024, when Binance excluded itself from taking responsibility for the $234 million hack on WazirX. The leading digital asset trading platform clarified that it neither owned nor played any role in WazirX’s operations.

Diamond Hands on WRX?

These events have caused WRX to lose its value over time. The token plunged over 26% after the hack, recovering during the broader market rally earlier this month, only to fall again after the Binance announcement. The asset has lost 53% of its value over the past week and was worth $0.102 at press time.

“I don’t understand, wasn’t WRX at its lowest already? Who was holding it in the hope of a pump?” asked CoinDCX co-founder Neeraj Khandelwal.