Binance clarifies it never owned WazirX, demands accountability

Binance has distanced itself from the ongoing struggles of the Indian crypto exchange WazirX in a Sept. 17 statement.

According to Binance, WazirX co-founder Nischal Shetty made several misleading statements that suggested the exchange might be responsible for the losses suffered by Indian crypto trading platform users after a $235 million hack in July.

Binance called the accusations “outrageously misleading,” clarifying that it has never “owned, controlled, or operated WazirX at any time, including before, during, or after the alleged hack.”

Binance also stated:

“Their attempts to shift responsibility is a disappointing deflection tactic, but it should not distract anyone from the glaring issue to be addressed here: the need for the WazirX team to be held accountable for user funds lost under their management.”

Clearing the air

In the extensive post, Binance reiterated that it does not own WazirX despite earlier negotiations to acquire the Indian exchange.

According to the exchange:

“Binance never acquired or controlled WazirX. While a contract had been signed between the parties, the proposed transaction never closed due to Zettai’s failure to perform its obligations.”

Instead, WazirX is currently owned by Zanmai Labs Pvt Ltd, an India-based firm registered with local regulators. Zanmai is a subsidiary of Zettai, a Singapore-based company owned by Shetty.

Due to this, Binance rejected Shetty’s suggestion that Zettai’s creditors could seek compensation from the Richard Teng-led platform.

Binance stated:

“There is no legal basis, in any scenario, to the claim that Binance would be liable for claims against Zettai. Any suggestion of Mr. Shetty to this effect is incorrect.”

Furthermore, Binance acknowledged that it previously provided tech solutions and support for the embattled Indian exchange.

However, Binance denied any responsibility for the hack, clarifying that Shetty and Zettai chose Liminal as a custody provider without its involvement after WazirX’s funds were removed from its platform.

In addition, Binance also stated it was never part of WazirX’s user agreement. Despite demanding that any references to its name be removed from the agreement, Binance claimed Shetty and Zanmai have repeatedly ignored these requests.

Unresponsive WazirX

Despite distancing itself from the Indian exchange, Binance revealed that its attempt to help the WazirX team has been rebuffed.

According to the exchange, it has been unable to verify the hack independently because its request for reports about the attack has not been answered. It stated:

“We have requested the WazirX team to provide us with their reports on the incident including all internal reports as well as the purported report from Mandiant from Aug. 14, 2024, which details the cause of the attack, and verification of the amount and proportion of user funds affected, but these requests remained unanswered.”

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