Binance Denies Ownership of WazirX, Rejects Responsibility for $230M Hack

Key Takeaways

• Binance stated that despite providing technology solutions to WazirX in the past, it was never part of WazirX’s user agreement.
• Binance clarified that it has never “owned, controlled, or operated WazirX,” calling Shetty’s claims “outrageously misleading.”

Leading crypto exchange Binance has rejected any responsibility for the $230 million hack of Indian crypto exchange WazirX, following allegations made by WazirX co-founder Nischal Shetty. In a statement released on September 17, Binance clarified that it has never “owned, controlled, or operated WazirX,” calling Shetty’s claims “outrageously misleading.”

The dispute arises after a July 2024 cyberattack on WazirX, which resulted in one of the largest crypto hacks of the year. In the aftermath, Shetty suggested Binance could be liable for compensating users affected by the hack, citing Binance’s supposed acquisition of WazirX.

However, Binance firmly denied this, stating, “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.”

WazirX, currently owned by Zanmai Labs Pvt Ltd, a subsidiary of Zettai based in Singapore, suffered significant financial losses when a hacker exploited vulnerabilities in its platform. Despite ongoing negotiations in the past, Binance emphasized it had no involvement with WazirX’s management during the hack, nor with the selection of Liminal as WazirX’s custody provider. Binance also noted that its efforts to assist WazirX post-hack were rebuffed, with requests for internal reports and information on the incident going unanswered.

In the statement, Binance highlighted the importance of holding WazirX accountable for the losses incurred by its users. The exchange 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.”

The relationship between the two companies has been fraught with tension. On August 27, Zettai filed an application with Singapore’s High Court to prevent WazirX creditors from taking collective action. Binance responded by stating there was “no legal basis” for Zettai’s creditors to pursue claims against it.

Binance also reiterated its position that, despite providing technology solutions to WazirX in the past, it was never part of WazirX’s user agreement. According to Binance, repeated requests for WazirX to remove references to Binance from its user agreements were ignored. Binance noted that the Binance vs. WazirX dispute has no stake in the WazirX hack. Binance also emphasized that they do not hold any funds belonging to WazirX or its customers