Changpeng Zhao (CZ), the co-founder and former CEO of Binance, has recently addressed the issues surrounding the crypto exchange WazirX. CZ, who served a four-month prison sentence as part of a settlement with US authorities over charges against Binance, stated that he had already warned people about the risks associated with WazirX.
In a recent exchange on Crypto X (formerly Twitter), a user reminded CZ of an old tweet where he had cautioned people about holding funds on WazirX. CZ responded by explaining that he was not aware of the situation at the time due to his incarceration. He also mentioned that he had previously issued warnings regarding WazirX.
However, the situation escalated when Indian crypto influencer Aditya Singh raised concerns about $17 million worth of cryptocurrencies belonging to WazirX that were seized by Binance. Despite the plea for clarification, CZ did not respond, leaving many customers frustrated and seeking his intervention.
Several Indian crypto influencers have urged CZ to step in and address the issues surrounding WazirX. Many believe that Binance could play a crucial role in resolving the matter and helping to restore the platform to its former glory.
The relationship between Binance and WazirX dates back to late 2020 when Binance announced its acquisition of the Indian exchange. However, CZ later revealed that the acquisition was never finalized due to the lack of cooperation from WazirX’s leadership. Subsequently, all services and relationships with WazirX were terminated.
In July 2024, WazirX experienced a hacking incident that resulted in the loss of nearly half of its customers’ funds. The mysterious hacker managed to breach the exchange’s cold wallet, leading to speculation about the premeditated nature of the attack. Despite ongoing efforts by WazirX’s leadership to restructure and resume services, customers remain in the dark about the future of the exchange.
As the crypto community awaits a resolution to the WazirX saga, CZ’s involvement could prove instrumental in restoring confidence and stability to the platform. Only time will tell if Binance will intervene and provide a much-needed lifeline to WazirX customers.