Nischal Shetty, the founder of WazirX, announced that the company is expanding and will build a decentralized exchange (DEX) alongside its current centralized services.
This decision follows the July 2024 hack of WazirX, in which $235 million of user funds were withdrawn. The DEX will help eliminate counterparty risk and allow users to manage their own assets. Shetty also mentioned that a DEX token will be launched to pay for fees and provide governance tools.
The WazirX Hack is Still Controversial
On July 18, WazirX’s multi-signature wallet was attacked, allegedly by the Lazarus Group from North Korea, resulting in a loss of $235 million, which was withdrawn via Tornado Cash for anonymity. WazirX then proposed limiting trade capital to 55% and locking 45% in USDT, but the move was met with customer backlash for being seen as “socializing the losses.”
In August 2024, WazirX reversed all transactions and restored balances to their pre-attack state.
The company is still struggling to recover the funds, with disputes over liability between WazirX and its former custody partner, Liminal.
