WazirX, an India-based crypto exchange, suffered a significant hack on July 18, 2024, resulting in the theft of over $230 million worth of crypto assets from its multisig wallet.

This incident is noted as the second-largest cryptocurrency hack of the year, with the stolen funds including over $100 million in shiba inu and $52 million in ether.

In the aftermath of the hack, WazirX paused withdrawals on the same day and trading shortly after, leaving the status of customer funds uncertain.

This moratorium application has raised concerns among users, who fear it may be an attempt to avoid regulatory scrutiny while the dispute with Binance continues.

Binance has distanced itself from WazirX's issues, stating it never owned or operated the exchange and emphasizing that WazirX should be held accountable for user funds lost under its management.

Many users are experiencing financial distress and have appealed to international authorities, including Interpol and the FBI, for assistance in recovering their lost funds.

WazirX has indicated that 43% of customer funds are unlikely to be recovered, leading to widespread frustration among users.

Users have expressed their discontent over a lack of transparency regarding the situation and the retention of $300 million in unhacked assets.

In response to the hack, Zettai, WazirX's parent company, applied for a moratorium in the Singapore High Court to restructure its liabilities, claiming it needed several months for the process.

Binance also rejected claims made by WazirX's CEO, Nischal Shetty, that Zettai's creditors could seek compensation from Binance, stating there is no legal basis for such claims.

Despite Binance's attempts to assist WazirX by seeking reports on the hack, it has reportedly received no responses to its requests for information.

An independent audit conducted by Liminal found no evidence of compromise in its digital infrastructure during the hack, contradicting WazirX's claims.