- Binance denies any involvement in the recent WazirX hack, refuting claims of ownership or control.
- WazirX lost approximately $235 million in a cyberattack on a wallet managed by its team and custody provider Liminal.
- Binance clarified that its role was limited to providing wallet services, with no operational control over WazirX.
Binance firmly refutes any association with the recent WazirX hack, dismissing misleading claims about its ties to the Indian exchange. The exchange stresses it never owned, controlled, or operated WazirX, thereby negating any responsibility for the breach on July 18, 2024.
WazirX endured a severe cyberattack that affected a wallet containing user funds, resulting in the distressing loss of assets totaling approximately $235 million. The exchange made it clear that the compromised wallet was under the complete management of the WazirX team working alongside custody provider Liminal.
Binance, through a blog post, firmly declared its noninvolvement in the operational aspects of the wallet and hinted that the WazirX team under the direction of Nischal Shetty might be deflecting responsibility by linking Binance to the attack.
Despite previous contractual discussions between the world’s largest exchange and WazirX, it clarified that a formal acquisition of the Indian exchange did not occur due to WazirX’s failure to meet contractual obligations. Zanmai Labs, the Indian entity that operates WazirX, remains the platform’s owner and operator.
Binance’s Limited Involvement in Wallet Services
The exchange emphasized that its involvement with WazirX was limited to providing wallet services, a practice it offers to many other third-party platforms globally, and it had no operational control over WazirX.
In a blog post, WazirX was accused of misleading both users and the market regarding its affiliation with Binance. The exchange has also demanded the removal of unauthorized references to Binance in WazirX’s user agreements. However, WazirX has yet to comply with these demands.
Reportedly, Nischal Shetty has filed affidavits in the Singapore High Court in the past, claiming that the theft has caused almost half of WazirX`s digital assets and the platform cannot supply the customers’ withdrawal requests. He has attempted to avoid responsibility by naming Binance as the one whose actions led to the hacking. The exchange has accused these allegations of being untrue and misguiding.
Binance declares that it is not the holder of WazirX users’ funds and that it is unrelated to the cyberattack. The exchange asked WazirX to take the burden of supporting its clients, stating that the claims that it was causing distractions were only internal affairs and that the users lost the money because of WazirX’s failures.
Related Reading | Robinhood Stablecoin Plans: Is A New Crypto Asset On The Horizon?
