Will Binance Repay WazirX’s Creditors After $235M Hack? Here’s What We Know

Binance, the world’s largest cryptocurrency by trading volume, has responded to claims that it is responsible for WazirX creditors after the Indian platform was hacked for $235 million on July 18.

The claims stem from an affidavit by Nischal Shetty, the co-founder of WazirX, who hinted that Binance’s dispute with Zettai, a Singapore-based company that holds the parent status for WazirX might result in its involvement in refunding customers’ funds.

Binance Distances Itself from WazirX Post-Hack Saga

In the latest blog post, Binance explained its stance with WazirX, emphasizing that it has never been involved in the day-to-day operations of the Indian exchange.

The firm also made it quite clear that apart from not owning WazirX at the time of the attack, it bore no responsibility for the platform’s lost assets. Instead, it has called on the Indian exchange to take responsibility for the hack that devastated its customers.

“Their responsibility to WazirX users is unrelated to their dispute with Binance. 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,” Binance said.

Per the blog post, despite previously signing a contract with Zettai, Binance never acquired or controlled WazirX. The exchange stated that the proposed transaction never materialized due to Zettai’s failure to perform its obligations.

The statement also clarifies WazirX’s  ownership structure, indicating that Zanmai Labs Pvt. Ltd. is the platform’s registered owner with the Indian Financial Intelligence Unit (FIU) and is recognized as such by the Enforcement Directorate.

By rejecting WazirX’s claims, Binance challenged the Indian exchange to take responsibility for its actions and decisions, particularly those involving users’ funds.

WazirX Users See Delay with Funds Recovery 

WazirX users have expressed dissatisfaction with the company’s handling of the situation, citing delays, a lack of transparency, frozen funds, and limited withdrawal options. 

Recently, WazirX’s Singapore-based parent company, Zettai Pte Ltd, sought a moratorium in the Singapore High Court, which protects the company from creditors attempting to seize its assets. This move has intensified fears of financial losses.