Blockchain movements hint at Binance aiding WazirX users with a $200 million fund, possibly for reimbursements.
The exchange is rebalancing funds into secure wallets and plans to release detailed holdings soon.
Zettai Pte Ltd seeks creditor approval in Singapore for a resolution plan to restart WazirX and recover funds.
In July 2024, WazirX, a major Indian crypto exchange, suffered a major hack. Which caused a loss of over $230 million. For months, affected users were left uncertain about whether they would recover their funds.
Recently, movements of $200 million on the blockchain have created speculation that Binance, the world’s largest crypto exchange, might be stepping in to assist with reimbursements.
Signs of Binance’s Involvement
An on-chain investigator highlighted that a WazirX wallet (0x305), previously consolidated unaffected user funds, recently received $200 million worth of crypto tokens from a Binance-linked wallet (0xb03). The token balances in these transactions closely match the missing amounts, hinting that this could be part of a potential reimbursement plan.
Although no official confirmation has been made, Binance’s previous relationship with WazirX and the scale of these fund movements strongly suggest the exchange’s involvement. Speculations are also rising about Binance potentially securing a strategic stake in WazirX as part of this arrangement.
WazirX’s Clarification and Ongoing Efforts
WazirX has responded to these developments by stressing that the fund movements are part of routine asset rebalancing. The exchange consolidates user funds and reallocates them into secure cold wallets as part of its efforts to enhance security. Once the rebalancing process is complete, WazirX promises to release a detailed list of its wallets and token holdings.
This step toward transparency has fueled hopes of an impending reimbursement announcement. However, the exchange has temporarily halted withdrawals and is cooperating with authorities to resolve the situation.
Zettai Pte Ltd’s Support
Adding to the developments, Zettai Pte Ltd, the parent company of Zanmai Labs. Which operates WazirX, has sought approval from Singapore’s High Court to convene a creditors’ meeting. The aim is to present and vote on a scheme of arrangement designed to ensure a fair resolution for all creditors. This move is expected to help creditors regain access to funds and assist WazirX in restarting its platform.
The $235 million hack caused concerns about security in the crypto industry. Especially as affected users missed out on significant profits during Bitcoin’s bull run from $63,000 to over $100,000.
If Binance backs the reimbursement efforts, it could signal a crucial step in restoring user trust and showcasing the power of collaboration in the crypto industry.
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