WazirX Security: What Happened and How to Stay Safe on Crypto Exchanges

When you put your crypto on an exchange like WazirX, a popular Indian crypto platform that once handled billions in trades. It's not just about price charts—it's about whether your money is locked in a vault or left on a sidewalk. In 2020, WazirX suffered a major hack that exposed weaknesses in its hot wallet system. Over $230 million in crypto vanished, and users were left wondering: How did this happen, and could it happen again? The answer wasn't just about one exchange—it was about how most crypto platforms handle security, and what you can do to protect yourself.

Crypto exchange security, the system of controls exchanges use to prevent theft, fraud, and system breaches isn't just about firewalls or two-factor login. It's about cold storage, multi-signature wallets, insurance funds, and real-time monitoring. WazirX didn’t have enough of these layers. After the hack, they moved most funds offline, added stricter audits, and partnered with security firms. But the damage was done—trust didn’t come back overnight. Meanwhile, exchanges like Bitstamp, a regulated European exchange with strong custody practices and Koindex, a platform flagged as a scam with zero security measures show how wide the gap can be. One follows global standards. The other doesn’t even pretend to.

What you need to know isn’t just what WazirX did right or wrong after the hack. It’s how to spot the difference between a platform that takes security seriously and one that’s just hoping you don’t look too closely. Look for proof: public audit reports, cold storage percentages, insurance coverage, and clear communication after incidents. If an exchange stays silent after a breach, walk away. If they offer no way to verify their wallet addresses, don’t trust them. And never leave large amounts on any exchange long-term—your wallet, your keys, your coins.

Below, you’ll find real stories from users who lost funds, deep dives into how hacks happen, and guides on choosing exchanges that actually protect your assets. This isn’t about fear—it’s about knowing what to look for before you click "Deposit".