Binance has issued a public statement addressing misleading claims made by Zettai, the parent company of WazirX, in light of recent events involving a cyber-attack on the WazirX platform. Binance clarified its non-involvement with WazirX’s operations, emphasizing that Zettai and WazirX management must be held accountable for the loss of user funds resulting from the attack.
On July 18, 2024, WazirX reported a cyber-attack that compromised a wallet holding user funds. The wallet was controlled by a multisignature process involving five members of the WazirX team and one representative from Liminal, a third-party custody provider. Binance was not involved in any operational aspect of this wallet or the attack, the company said in its statement.
Despite claims by Nischal Shetty, founder of WazirX and Zettai, suggesting Binance’s involvement in the incident, Binance firmly denied any connection. The statement also highlighted that Binance has never owned, controlled, or operated WazirX at any time, including before or after the attack.
WazirX Hack and Losses
The attack, which occurred in July, resulted in the loss of approximately $235 million in user funds. In the wake of this attack, WazirX has struggled to meet withdrawal requests from customers. On August 27, 2024, Zettai Pte Ltd filed for a moratorium in Singapore’s High Court, seeking to prevent creditors, including WazirX users, from pursuing legal action.
In legal affidavits, Mr. Shetty admitted that nearly half of WazirX’s digital assets were stolen in the hack and that the platform is currently unable to fulfill its customers’ withdrawal requests. Despite this, he has continued to make allegations regarding Binance’s role, which Binance has described as “outrageously misleading.”
Binance Clarifies Key Points:
- Binance Did Not Acquire WazirX: While a contract was signed between Binance and WazirX, the transaction was never finalized due to Zettai’s failure to fulfill its obligations.
- Ownership and Responsibility: WazirX’s parent company, Zanmai Labs Pvt Ltd, registered the platform with the Indian Financial Intelligence Unit (FIU) and has always retained ownership and control over the exchange. Binance reiterated that Zanmai, Zettai, and Nischal Shetty continue to operate WazirX.
- Accountability: Binance urged Zettai and WazirX to take full responsibility for the losses suffered by users and not to mislead customers by deflecting blame onto Binance.
Binance concluded by reserving the right to make further comments as the dispute continues to evolve and emphasized the need for WazirX management to prioritize compensating affected users.
The ongoing dispute between Binance and Zettai has drawn significant attention, and Binance’s latest statement seeks to clarify its role and call for accountability as WazirX faces mounting pressure to address the loss of user funds.
