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In summary
- Binance has denied ownership of WazirX and responsibility for a $235 million hack, urging the platform to address losses of user funds.
- Binance has released a statement addressing claims about its relationship with WazirX, following a hack in July 2024 that resulted in losses of $235 million.
- Binance’s statement responded to claims by Nischal Shetty, owner of Zettai Pte Ltd, who filed affidavits with the Singapore High Court.
Binance denies ownership of WazirX and responsibility for a recent $235 million hack, urging the platform to address losses of user funds.
Binance has released a statement addressing recent claims about its relationship with Indian Cryptocurrency platform WazirX in a blog post. This announcement follows a reported hack of WazirX in July 2024, which resulted in the loss of user funds valued at approximately $235 million.
The statement is in response to claims made by Nischal Shetty, the principal owner of Zettai Pte Ltd, a Singapore-incorporated entity associated with WazirX. Shetty filed affidavits with the Singapore High Court as part of a moratorium application to prevent creditors from taking class action against the company.
In these affidavits, Shetty made claims about Binance’s relationship with WazirX, which Binance disputes. In fact, Binance has been denying since 2022 that it ever completed its acquisition of the Indian exchange.
“Their attempt to deflect responsibility is a disappointing avoidance tactic, but it should not distract anyone from the glaring issue that needs to be addressed here: the need for the WazirX team to be held accountable for lost user funds under their management,” Binance wrote in its blog post.
WazirX did not immediately respond to a request for comment from Decrypt.
Binance’s statement addresses several key points. The exchange claims that although it signed a contract, it never completed the acquisition of WazirX due to Zettai’s failure to fulfill its obligations.
Binance maintains that it has never owned, controlled or operated WazirX. Furthermore, Binance, the world’s largest exchange by volume, also claims that it is not a party to WazirX’s User Agreement with its customers and that references to Binance in the agreement are unauthorized.
Regarding the hack, Binance maintains that it bears no responsibility. It stated that in January 2023, it instructed Zanmai, an Indian company associated with WazirX, to withdraw funds from cryptocurrency wallets hosted on Binance.
According to Binance, this withdrawal was completed before the attack occurred. It also notes that the choice of the new custody solutions provider, Liminal, was made by Shetty and Zettai without Binance’s involvement.
The compromised wallet was reportedly operated using Liminal’s services, but the company has also denied any responsibility for the hack.
Binance says it has requested, but not received, reports about the incident, including an alleged report from cybersecurity firm Mandiant dated August 14, 2024. The exchange is urging the WazirX team to address its users’ concerns about the lost funds, stating that this liability is separate from any dispute with Binance.
Edited by Stacy Elliott.
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