Binance Responds to WazirX Controversy
In a recent statement on Sept. 17, Binance addressed the ongoing issues surrounding the Indian crypto exchange WazirX. The statement came in response to accusations made by WazirX co-founder Nischal Shetty, suggesting that Binance may be accountable for the losses incurred by users of the platform following a $235 million hack in July.
Binance was quick to refute these claims, stating that they have never owned, controlled, or operated WazirX at any point in time, including before, during, or after the alleged hack. The exchange called the allegations “outrageously misleading” and emphasized the need for the WazirX team to take responsibility for the lost user funds.
Setting the record straight, Binance clarified that while there were discussions about acquiring WazirX in the past, the transaction never materialized due to Zettai’s failure to fulfill its obligations. WazirX is currently owned by Zanmai Labs Pvt Ltd, a subsidiary of Zettai, a Singapore-based company owned by Shetty.
Despite providing technical solutions and support to WazirX in the past, Binance made it clear that they were not involved in the selection of Liminal as a custody provider after the funds were moved from the platform. Additionally, Binance stated that they were never included in WazirX’s user agreement and had requested multiple times for any references to their name to be removed, but Shetty and Zanmai failed to comply.
In response to the hack, Binance revealed that they have been unable to verify the incident independently as their requests for reports from WazirX have gone unanswered. The exchange requested reports detailing the cause of the attack and the extent of user funds affected, but WazirX has not provided the information.
Overall, Binance made it clear that they are not liable for any claims against Zettai and emphasized the importance of holding the WazirX team accountable for the lost funds. The exchange’s efforts to help WazirX have been met with resistance, highlighting the ongoing challenges in the aftermath of the hack.