In response to accusations stemming from a devastating $235 million cyber-attack on the Indian crypto exchange WazirX, Binance publicly refuted any responsibility on September 17.
In a detailed blog post, Binance stated unequivocally that it has never been involved in WazirX’s operations.
Binance Refutes Claims And Questioned WazirX’s Accountability
The exchange emphasized that its 2021 acquisition agreement with WazirX was never finalized, and the company had no control over the platform before, during, or after the July 2024 WazirX hack or attack.
Binance responded after WazirX’s co-founder, Nischal Shetty, suggested Binance bore some responsibility for the platform’s security breach.
1/ FACTS about WazirX & Binance:
WazirX was acquired by Binance
Zanmai Labs is an India entity owned by me & my co-founders
Zanmai Labs has license frm Binance to operate INR-Crypto pairs in WazirX
Binance operates crypto to crypto pairs, processes crypto withdrawal…
— Nischal (Shardeum) 🔼 (@NischalShetty) August 5, 2022
The exchange, however, accused Shetty of issuing misleading statements to shift blame.
“The WazirX team and Nischal Shetty continue to mislead customers and the market regarding the relationship between WazirX and Binance,” the blog post stated.
Binance further challenged WazirX to take responsibility for its actions, particularly regarding user funds lost in the attack.
The blog post highlighted that the security and protection of user assets are paramount responsibilities for any cryptocurrency exchange and criticized WazirX for deflecting responsibility.
“WazirX must be held accountable for user funds lost under their management,” Binance asserted.
Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.
WazirX has been uncooperative with us, and looks like uncooperative with ED as well.
— CZ 🔶 BNB (@cz_binance) August 6, 2022
The statement suggested that WazirX was attempting to create a narrative that its ownership dispute with Binance had hindered its ability to secure customer assets or issue refunds, a claim Binance dismissed as a “dubious tactic.”
Ownership Loophole Exposed With Funds Recovery Unlikely for WazirX Users
In its statement, Binance revealed details of WazirX’s ownership structure, pointing out that Zanmai Pvt. Ltd. is the registered owner of the platform, as recognized by the Indian Financial Intelligence Unit (FIU).
Additionally, WazirX is linked to Zettai Pte Ltd, a Singapore-based company, which is creating a structural loophole that shields the personal assets of WazirX’s leadership, including Nischal Shetty.
This corporate structure has been a point of contention in WazirX’s efforts to restructure, but Binance criticized these claims as further deflection from the Indian exchange’s mismanagement.
Meanwhile, WazirX’s legal team has since admitted that users affected by the hack are unlikely to recover the full amount of their losses.
During a community town hall, WazirX’s representatives estimated that users would recover only about 57% of their crypto holdings, with no possibility of full restitution in digital assets.
In the aftermath of the cyber-attack, WazirX entered a Scheme of Arrangement in Singapore to restructure under local insolvency laws.
An independent audit by Grant Thornton found no evidence linking Liminal Custody’s infrastructure to the hack, further complicating the situation.
As Binance and WazirX continue their public dispute, the Indian exchange remains pressured to take responsibility for the incident and provide clearer solutions for affected users.