- Binance has denied any involvement in or control over WazirX, particularly in relation to the recent $235 million hack.
- The company clarifies that Zanmai Labs remains responsible for WazirX’s operations and that Binance never acquired or managed the platform.
In a recent blog post, Binance, the world’s largest cryptocurrency exchange, has emphatically denied any involvement or control over the WazirX platform, especially in the wake of a significant cyber-attack in July 2024. The attack resulted in the loss of approximately $235 million in user funds, stirring up a storm of controversy and finger-pointing in the crypto community.
No Association with WazirX Hack
Binance has clarified that it is not responsible for the operations or security of WazirX, the Indian cryptocurrency exchange. According to Binance, any mentions of Binance in WazirX’s User Agreement are unauthorized. The blog post states that Zanmai Labs Pvt Ltd, the Indian company that registered WazirX with the Indian Financial Intelligence Unit (FIU), is the sole operator of the platform. “The Directorate of Enforcement in India has confirmed that Zanmai is the owner of WazirX,” Binance’s statement reads.
Ownership and Control Dispute
The controversy intensified following WazirX’s announcement of the hack, which led to an unprecedented number of withdrawal requests that the platform has struggled to meet. Binance has responded by underscoring that it never acquired or controlled WazirX. Despite a contract being signed in 2019, the transaction never concluded due to Zettai’s failure to fulfill its obligations. “Binance has never owned, controlled, or operated WazirX at any time, including before, during, or after the hack,” the post asserts.
WazirX’s Response
Nishchal Shetty, co-founder of WazirX, had previously claimed on social media that he was still running the platform, reinforcing his stance that WazirX remains under its original management. Binance’s blog post challenges any implication that the current dispute might entangle Binance in the financial responsibilities related to the hack. “Mr. Shetty’s attempts to shift responsibility are disappointing deflections,” the post notes, urging focus on holding the WazirX team accountable for the losses.
Background Context
This dispute follows Binance’s earlier statements, including one from CEO Changpeng Zhao in August 2022, declaring that Binance did not own any equity in WazirX or control its operations. Despite these assertions, WazirX’s legal team recently argued that Binance controlled significant aspects of WazirX’s parent company, Zettai, which allegedly hindered WazirX’s ability to cover the losses from the hack.
As the situation unfolds, Binance’s firm stance highlights the complexities and ongoing disputes in the cryptocurrency exchange landscape. The resolution of this issue will be crucial in determining the future operations and financial responsibilities of both Binance and WazirX.
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