WazirX, one of India’s biggest cryptocurrency exchanges, plans to launch a decentralized exchange (DEX) following a massive security breach in July 2024 that led to the theft of $235 million. The new platform aims to remedy the vulnerabilities exposed in the exchange’s multi-signature wallet system, which was exploited by hackers.
The DEX will launch in early 2025 alongside WazirX’s existing centralized platform, offering users a choice between traditional and decentralized trading options. The platform will feature its own token to handle transaction fees and enable community governance of the protocol. The hack, attributed to the North Korean hacking group known as Lazarus, exposed weaknesses in the multi-signature wallet system, allowing hackers to channel the stolen funds through Tornado Cash, a privacy tool that masks transaction histories.
WazirX initially froze 45% of users’ account balances but reversed this decision in August after facing backlash from the crypto community. WazirX’s DEX will operate independently of the centralized platform, with a focus on advanced security protocols and user control over private keys. The platform will implement smart contract-based trading, automated market making protocols, and integration with multiple blockchain networks to provide a secure and efficient trading experience.
The new DEX will prioritize ease of use while maintaining robust security features, and the exchange plans to publish detailed documentation about the platform’s security measures before launch. Industry observers are closely monitoring the project as it represents one of the first major shifts from centralized to decentralized trading following a large-scale security breach.
