Catenaa, Tuesday, November 12, 2024 – Indian crypto exchange WazirX has announced plans to expand its offerings by developing a decentralized exchange (DEX) alongside its existing centralized platform.
Founder Nischal Shetty shared the update, emphasizing that the DEX will allow users full self-custody over their assets, addressing risks associated with centralized exchanges.
The decision to explore decentralized options follows a severe hack in July 2024, when WazirX lost around $235 million in user funds. The breach, attributed to the North Korean Lazarus Group, exploited WazirX’s multisignature wallet system.
Hackers moved the funds through Tornado Cash, a protocol that obscures transaction histories, complicating the recovery process.
In response to the attack, WazirX implemented a controversial policy, limiting trading capital to 55% of users’ balances and converting the remaining 45% to Tether (USDT).
This measure, meant to protect remaining assets, drew criticism from users who saw it as “socializing losses.”
The decentralized exchange, as Shetty explained, will feature a DEX token for fee payments and governance functions, allowing users to vote on platform-related decisions.
Shetty stated that decentralization will empower users to control their assets independently, reducing exposure to counterparty risk.
In August, WazirX reversed all trades affected by the hack, restoring users’ balances to their pre-attack status. Efforts to recover stolen funds are ongoing amid disputes with former custody partner Liminal over responsibility for the breach.
