WazirX bets on AI trading tools after $235M hack

Key Takeaways

• WazirX is launching an AI assistant that lets users execute trades through natural language commands instead of traditional interfaces
• The exchange now holds 8-10% of India's crypto market, down from over 50% before the hack, and aims to reclaim its top position
• Users received 85% of their balances after the Singapore court approved restructuring, with the remaining 15% to be distributed over three years

WazirX is rolling out AI-powered trading tools and futures products as it fights to rebuild market share after last year's $235 million cyber attack. Founder Nischal Shetty says the exchange will launch "WazirX AI," an assistant that lets users trade crypto through plain English commands rather than navigating complex order forms.

The platform currently holds just 8-10% of India's crypto trading market, a steep fall from the 50%-plus share it commanded before the July 2024 breach. Shetty is betting that product innovation and improved customer service can reverse that slide.

How will WazirX's AI assistant work?

The AI tool replaces the manual process of setting stop losses, calculating price levels, and filling out order forms. A user could tell the assistant to buy Bitcoin if its price drops 5%, and the system handles the execution. No menus, no parameters, no spreadsheets.

“I think that's the future, where instead of trying to learn how a trading interface operates, where the stop losses are, how do you fill up a form... the more natural way of trading for people will be where you just instruct your AI to do things for you, and it does it.”

— Nischal Shetty, Founder, WazirX

Shetty also positions the AI as a fact-checker for the hype-driven crypto market. Traders often lose money chasing claims they see on social media, he argues. The assistant could evaluate whether a bullish post about a token is backed by actual data before a user acts on it.

"A lot of traders lose money because they panic, or because they make a decision... seeing a random post online by some random person saying this token will go up by x percentage," Shetty said. "Well, now you can treat them as signals, but you can ask AI is this true, or is there enough data to back this claim?"

What else is WazirX launching?

Beyond AI, the exchange has introduced two new products aimed at active traders. WazirX ZERO is a subscription model priced at Rs 99 per month that eliminates per-trade fees on more than 300 tokens. The pitch is simple: pay once, trade as much as you want.

Futures trading launched in June with maker fees of 0.02% and taker fees of 0.04%, with no minimum volume requirements. Staking features are also in the works to help users earn yield on holdings.

Revenue is the priority. Shetty was direct about why: the restructuring plan obligates WazirX to compensate creditors. "The number one priority for us is generating profits so we can distribute it to our creditors. That is the ultimate goal, it is what we are focusing on," he said.

Where does WazirX stand after the hack?

The exchange resumed operations in October after Singapore's High Court approved its restructuring plan. Users received 85% of their balances within 10 days of the restart. The remaining 15% will be distributed over three years, funded by the company's future profits.

WazirX's survival is unusual. Shetty pointed out that exchanges hit by attacks of similar scale have typically shut down permanently. "I don't think there is any precedent for something like this. Exchanges that have had attacks of the magnitudes like ours have usually wound down and been unable to restructure and restart," he said.

The exchange now records daily trading volumes in the millions of dollars, according to Shetty, though he did not provide a specific figure. The goal is to reclaim the top spot in India's crypto market, a position it took four years to reach after launching in 2018.

“When we launched in 2018 we were the eighth or the 10th exchange, and it took us about four years to reach number one position. There are mature players now, a larger ecosystem, but we are pretty confident that if we focus on the product and the customer service as we've done before, we will be able to break through and become the largest again.”

— Nischal Shetty, Founder, WazirX

Can AI actually help crypto traders make better decisions?

Natural language trading interfaces are not new. Several platforms offer chatbot-style order entry. The harder question is whether an AI assistant can genuinely reduce the impulsive, emotion-driven trades that cost retail investors money.

Shetty's pitch rests on the AI validating claims before users act. That requires the assistant to access reliable, real-time data and evaluate it accurately. In crypto, where misinformation spreads fast and market manipulation is rampant, this is a high bar. The feature's value will depend on how well WazirX trains its model and what data sources it uses.

Frequently Asked Questions

How much money was stolen in the WazirX hack?

Approximately $235 million was stolen in the July 2024 cyber attack, attributed to North Korea's Lazarus Group. The breach exploited the platform's multi-signature wallet system.

How much of their money did WazirX users get back?

Users received 85% of their balances within 10 days of WazirX resuming operations in October. The remaining 15% will be distributed over three years under the court-approved restructuring plan.

What is WazirX AI?

WazirX AI is an upcoming assistant that allows users to execute trades, conduct research, and analyze market sentiment using natural language commands instead of traditional trading interfaces.

What is WazirX's current market share in India?

WazirX currently holds about 8-10% of India's crypto trading market, down from over 50% before the hack. The company aims to regain its position as India's largest exchange.

What is WazirX ZERO?

WazirX ZERO is a subscription service priced at Rs 99 per month that eliminates per-trade transaction fees on more than 300 tokens.

Source: Tech-Economic Times / ET