NAIROBI (CoinChapter.com) — Binance has denied any responsibility for the $230 million WazirX hack. The denial came after WazirX co-founder Nischal Shetty suggested Binance should compensate affected users. Binance clarified it never completed the acquisition of WazirX’s parent company, Zettai Pte Ltd, and had no control over WazirX during the hack.
Binance Distances Itself from WazirX $230M Hack
In a Sept. 17 statement, Binance denied any involvement in WazirX’s operations during the July 18 hack. Binance clarified that although it had signed a contract to acquire WazirX’s parent company, Zettai Pte Ltd, the deal never closed because of Zettai’s failure to meet obligations. The exchange reiterated that it never “owned, controlled, or operated WazirX” and placed full responsibility for the compromised wallet on WazirX and its custodian, Liminal.
Binance denies blame in $230M WazirX hack, urges user repayments. Source: Binance Blog
Binance also criticized WazirX co-founder Nischal Shetty, accusing him of making “misleading statements” to deflect blame. The July 18 hack, which resulted in over $230 million being stolen, targeted a multisignature wallet jointly managed by WazirX and Liminal. Binance emphasized it had no involvement in the wallet’s management.
Zettai Pte Ltd sought legal protection by filing for a moratorium in Singapore’s High Court on Aug. 27. During court proceedings, Shetty admitted the hack had wiped out nearly half of WazirX’s assets. Despite Binance’s attempts to verify the hack and assist WazirX, it stated that its efforts were ignored, with WazirX failing to provide any information on the incident.
WazirX Users Face 45% Loss as Exchange Refuses to Share Past Profits
In a Sept. 16 town hall, WazirX proposed a restructuring plan that would see users take a 45% hit on their investments. The exchange also stated it would not share past profits with affected users, further aggravating the situation.
Nischal Shetty leads WazirX town hall on September 16, 2024. Source: YouTube
Shetty defended the decision, reiterating that Zettai does not control WazirX profits. Users, however, criticized the exchange, with some accusing Shetty of avoiding responsibility.
WazirX users have expressed frustration with the exchange’s handling of the situation, calling for Shetty to compensate users directly. Some users, such as @CryptoMan451715, accuse Shetty of fraud, urging him to sell WazirX and leave the crypto industry altogether.
Binance has made it clear they hold no responsibility for the WazirX hack, while frustrated users continue to press WazirX leadership for answers and compensation.
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