#WazirXScamOrHack
🛑 WazirX Scam Overview (As of July 2025)
1. Massive Hack (July 2024):
WazirX lost $234 million (₹2,000 crore) due to a multisig wallet breach allegedly by North Korean Lazarus Group. The attackers exploited a leaked private key and upgraded to a malicious smart contract.
2. Controversial Recovery Plan:
WazirX introduced a “socialized loss” policy, returning only about 55% of user funds. Many users felt cheated, especially those who held high-performing assets.
3. Legal Troubles:
Delhi Court advised CBI to take over the ₹2,000 crore fraud probe.
Investigated by Enforcement Directorate (ED) and Narcotics Control Bureau for money laundering.
4. Failed Restructuring:
In June 2025, the Singapore High Court rejected WazirX's restructuring plan, casting more doubt on the exchange’s ability to recover or operate normally.
5. Damaged Reputation:
Despite prior claims of strong security (2FA, KYC, 95% cold storage), user trust is shattered. Many users report frozen withdrawals, and Indian influencers now mock WazirX as a “chit fund scam.”
⚠️ Final Verdict:
WazirX is not a scam by design, but has become high-risk due to:
Poor crisis handling
Unfavorable refund policies
Ongoing legal scrutiny
Loss of user trust