- Binance has denied any responsibility for the losses caused by a cyber-attack on WazirX in July 2024
- WazirX owner Nischal Shetty has accused Binance of being partially responsible, but Binance has refuted these claims as “outrageously misleading”
- Binance clarified that it has never owned, controlled, or operated WazirX, and it bears no responsibility for the platform’s operations or the hack
Binance has hit out the actions of Indian exchange WazirX, labelling the exchange’s attempt to blame it for the recent $230 million hack as a “disappointing deflection tactic.” WazirX had previously blamed its custodian, Liminal, for the hot wallet leak that saw the platform compromised in July, but it has since turned its attention to Binance. In a blog post yesterday, Binance reaffirmed that it has not owned, controlled, or operated WazirX at any time, including before, during, or after the July 2024 attack, contrary to statements made by the WazirX team and its CEO Nischal Shetty.
Binance Criticizes “Outrageously Misleading” Claims
In its blog post, Binance noted that Shetty has suggested that Binance might bear some responsibility for the hack, but the global crypto exchange swiftly has rejected these claims.
Binance issued a detailed statement addressing Shetty’s accusations, labeling them as “outrageously misleading” and a “disappointing deflection tactic.”
The company reiterated that while it had previously signed a contract to acquire WazirX, the deal never closed. “Binance has never owned, controlled, or operated WazirX at any time, including before, during, or after the alleged hack,” the post stated, adding that WazirX has always been owned and operated by Shetty’s team at Zanmai Labs Pvt Ltd and Zettai Pte Ltd.
No Liability
The exchange also refuted Shetty’s claim that Binance would be liable to WazirX creditors, stressing, “There is no legal basis, in any scenario, to the claim that Binance would be liable for claims against Zettai.”. The company added that WazirX’s user agreement never included Binance and any references to the global exchange in the agreement were unauthorized.
Regarding the storage of user funds, Binance clarified that while it had previously provided cryptocurrency wallets to WazirX as a service, those funds were withdrawn by Shetty’s team in January 2023, long before the cyber-attack. “No WazirX user funds remained with Binance,” the company confirmed.
Binance further noted that it had requested WazirX to provide detailed reports on the hack, including internal investigations and the findings of cybersecurity firm Mandiant, but these requests have yet to be answered.
