Binance, the world’s largest cryptocurrency exchange, has flatly denied any responsibility for the recent $230 million hack of Indian exchange WazirX. The company is demanding that WazirX take full responsibility and compensate users affected by the massive cyberattack.
Binance denies the accusations
Following the hack on July 18, WazirX suggested that Binnace Exchange could be responsible for covering the losses. The exchange claimed to have acquired or controlled WazirX, suggesting that it would be responsible for dealing with the aftermath.
In a statement released on September 17, Binance refuted these claims. Binance called WazirX’s attempt to shift blame “disappointing” and said it was a distraction from the real issue: WazirX’s failure to protect its users. Binance stressed that the WazirX team should be held accountable for the lost funds.
“Their attempt to shift responsibility is a disappointing evasive strategy,” the company said. “In reality, WazirX should be held accountable for the funds lost under its management.”
Binance did not acquire WazirX
An explanation has been provided for the WazirX relationship. Despite rumors, Binance has stated that it has never completed a deal to acquire an Indian exchange. The two companies entered into a contract, but the deal never came to fruition due to WazirX’s parent company, Zettai, failing to meet its obligations.
“Binance has never acquired or controlled WazirX,” the statement reads. “We have never owned, operated or managed WazirX at any time, including before, during or after the hack.” Instead, WazirX is run by Zanmai Labs Pvt Ltd, a locally regulated, India-based company.
The legal dispute continues
Here is the statement from Binance: Jettai Co., Ltd.The owner of WazirX has filed a lawsuit in the Singapore High Court. The lawsuit, filed on August 27, seeks to prevent WazirX’s creditors from filing a class action lawsuit against the exchange.
Nischal Shetty, co-founder and CEO of WazirX, has made several claims about Binance’s involvement, which Binance has denied. Binance has called Shetty’s statements misleading and said he is trying to avoid responsibility for the hack.
“There is no legal basis to hold us liable for Zettai’s debts,” the company said. “Mr. Shetty’s claims are false and designed to mislead.”
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