Evaluating only WazirX’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. Documented cause: Founder chaos.
Key Events Timeline
FOUNDING
WazirX founded as India's cryptocurrency exchange platform
FUNDING
WazirX acquired by Binance for $15M, becoming India's largest crypto exchange with 15M users
SHUTDOWN
WazirX ceases operations; 15M users unable to access $5B in combined holdings
FRAUD EXPOSURE
Lazarus Group (North Korean hackers) exploits multisig wallet vulnerability, stealing $235M (~50% of total assets)
REGULATORY ACTION
WazirX suspends all user withdrawals following security breach; Singapore court initiates restructuring proceedings
Full Analysis
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Documented cause
WazirX processed ~$5B annually for 15M Indian users, making it India's largest crypto exchange. In August 2024, North Korean Lazarus Group hackers exploited a multisig wallet vulnerability, stealing $235M — nearly half of WazirX's total assets. The company suspended withdrawals. Singapore court restructuring proceedings initiated. Users unable to access funds.
Lesson
“Crypto exchanges holding >20% of customer assets in any single multisig wallet are one exploit away from insolvency. Proof of reserves and cold storage segregation are not optional security practices; they are the minimum viable security model.”