Binance denies ownership of WazirX and responsibility for $235 million hack, calls on platform to cover user losses.
Binance has released an official statement on its blog addressing allegations regarding its relationship with Indian cryptocurrency platform WazirX. The statement comes after a hack occurred on WazirX in July 2024, causing a loss of approximately $235 million to users.
In a statement, Binance disputed the claims made by Nischal Shetty, the principal owner of Zettai Pte Ltd, a Singapore-based entity involved in WazirX. Shetty filed an affidavit with the Singapore High Court, seeking a stay order to prevent creditors from taking a class action against the company.
In these affidavits, Shetty makes claims regarding the relationship between Binance and WazirX, which Binance denies. In fact, Binance has denied completing the acquisition of WazirX since 2022.
“They are trying to shift responsibility in a disappointing way, but that should not overshadow the main issue that needs to be addressed: the WazirX team must be held accountable for user funds lost under their custody,” Binance stressed in the blog post.
In the statement, Binance stressed that despite the contract being signed, the acquisition of WazirX was never completed due to Zettai’s failure to fulfill its obligations. Binance asserted that it has never owned, controlled, or operated WazirX. The world’s largest exchange by volume also said that it was not a party to WazirX’s User Agreement with its customers, and that references to Binance in the agreement were unauthorized.
Binance has denied any responsibility for the hack. The exchange said it had asked Zanmai, an Indian company associated with WazirX, to withdraw funds from crypto wallets hosted on Binance in January 2023 before the attack. Binance also noted that the decision to choose the new custody provider, Liminal, was made by Shetty and Zettai without Binance’s involvement.
The compromised wallet is believed to have used Liminal’s services, but the company has also denied any responsibility for the hack. Binance claims that it has requested, but has not yet received, a report on the incident, including one from cybersecurity firm Mandiant on August 14, 2024. The exchange called on the WazirX team to confront and address user concerns regarding the lost funds, stressing that this responsibility is separate from any dispute with Binance.
Source: https://tapchibitcoin.io/binance-phu-nhan-trach-nhiem-trong-vu-hack-wazirx-chua-mua-lai-cong-ty.html
