- Binance has addressed WazirX’s hack for the first time.
- The exchange denied responsibility for the hack’s losses.
- Binance also clarified its dispute with WazirX’s parent company.
Binance, the world’s largest crypto exchange by trading volume, has refuted Nischal Shetty’s claims that it might be somehow responsible for the losses suffered by WazirX users after the platform was hacked for $235 million on July 18.
The claims stem from an affidavit by Shetty asserting that Binance’s dispute with Zettai, a Singapore-based company that holds the parent status for WazirX, may result in a determination that Binance owns WazirX, meaning the hacked exchange’s creditors may become creditors of Binance.
Binance Sets the Record Straight
Noting that Shetty’s claims made it clear that the WazirX co-founder was trying to blame Binance for the hack, the exchange said it felt “compelled” to address the inaccuracies to help users understand the situation and its facts.
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Per the statement, Binance has “never” acquired or controlled WazirX despite previously signing a contract with Zettai. The exchange stated that the proposed transaction never materialized due to Zettai’s failure to perform its obligations.
“Whatever the outcome of the dispute, Binance does not own or operate WazirX.” The statement read. "Zettai and its affiliates accept that they still operate WazirX. In the dispute, Zettai and its affiliates are not seeking a declaration that Binance is the owner, controller, or operator of WazirX.”
The exchange further clarified that it did not hold WazirX users’ funds, which it said Shetty and Zettai removed from its wallets before the potential acquisition and the July attack.
“Furthermore, the WazirX team has confirmed that they and Liminal (not Binance) were wallet signatories and the compromised wallet was operated utilizing the services of Liminal and not Binance.” The exchange said.
According to the statement, Binance has yet to verify the July 18 hack on WazirX as the trading platform did not provide reports on the incident as initially requested.
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