Crypto giant Binance has distanced itself from the recent $235 million hack of Indian exchange WazirX. The attack, which occurred on July 18, 2024, has left WazirX unable to process user withdrawals.
Binance clarified it was not involved in WazirX’s wallet operations. It never owned or controlled WazirX. Binance stated it is not a party to WazirX’s User Agreement. Any mentions of Binance in that context are unauthorized. Despite disputes, Nischal Shetty, the owner of Zettai, a company linked to WazirX, has made false claims about how the two platforms work together.
On Aug. 27, 2024, Zettai applied for a pause in Singapore. This was to stop creditors, including WazirX customers, from taking action against it. Shetty’s statements suggest Binance might be responsible for the losses from the cyber-attack. But the exchange has strongly denied this claim.
Binance call for accountability from WazirX
According to Binance, WazirX’s team at Zanmai is fully responsible for user funds. The exchange said that protecting user money is a key duty for any crypto platform. They urged WazirX to take responsibility for the lost funds. They called WazirX’s attempts to avoid blame a disappointing tactic. However, this distracts from the real issue – the need to compensate users.
Moreover, in response to the attack, Binance has asked WazirX for detailed reports. But WazirX has not answered these requests. An investigation by Grant Thornton found the attack came from outside Liminal’s systems:
This adds to concerns about how WazirX manages user funds. Nevertheless, This is not the first time WazirX has faced challenges. India has increased regulation on the platform. People have also questioned WazirX’s operational integrity.
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