2024

Bitcoin

WazirX

Binance, the world’s largest cryptocurrency exchange, has denied any blame for the high-profile WazirX hack following misleading statements about the relationship between Binance and the Indian exchange.
Following the $230-million hack, WazirX claimed that Binance could be responsible for making the Indian exchange’s creditors whole due to Binance allegedly acquiring and controlling the WazirX exchange.
In response to the allegations, Binance released an official <a data-ct-non-breakable="null" href="https://www.binance.com/en-GB/blog/community/to-the-wazirx-community-correction-of-zettais-inaccurate-and-misleading-statements-concerning-binance-4005526688459858370?hl=en" rel="nofollow noopener" target="_blank" text="null" title="https://www.binance.com/en-GB/blog/community/to-the-wazirx-community-correction-of-zettais-inaccurate-and-misleading-statements-concerning-binance-4005526688459858370?hl=en">statement</a> on Sept. 17:
<blockquote>
 “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.”
</blockquote>
On July 18, a hacker <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m" rel="" target="_self" text="null" title="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m">stole over $230 million from WazirX</a>, an Indian cryptocurrency exchange, in the second-largest cryptocurrency hack of 2024 so far.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-etfs-major-target-north-korean-hackers-cyvers" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-etfs-major-target-north-korean-hackers-cyvers">Bitcoin ETFs are next major target for North Korean hackers — Cyvers</a>
<h2 id="binance-did-not-acquire-wazirx">Binance did not acquire WazirX</h2>
According to the official statement, the first major inaccuracy is related to Binance acquiring the WazirX exchange.
Despite Binance exploring the possibility of purchasing the Indian exchange, the acquisition never took place, according to Binance’s statement:
<blockquote>
 “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. Binance has never owned, controlled, or operated WazirX at any time, including before, during, or after the alleged hack.”
</blockquote>
Binance added that WazirX is controlled by Zanmai Labs Pvt Ltd, an India-incorporated legal entity that is registered with the Indian regulator.<iframe width="100%" height="315" src="https://www.youtube.com/embed/JUTvtcwDXjI" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
How CZ built Binance and became the richest person in crypto | Crypto Stories Ep. 16. Source: Cointelegraph/YouTube
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hackers-surpass-1-2-billion-stolen-2024-immunefi" rel="" target="_self" text="null" title="https://cointelegraph.com/news/hackers-surpass-1-2-billion-stolen-2024-immunefi">Crypto hackers surpass $1.2 billion stolen in 2024: Immunefi</a>
<h2 id="wazirx-and-binance-clarifying-the-relationships">WazirX and Binance: Clarifying the relationships</h2>
Binance’s statement comes after an Aug. 27 application with the Singapore High Court from Zettai Pte Ltd, which served to prevent WazirX’s creditors from taking collective action against it.
Zettai’s main owner is Nischal Shetty, co-founder and CEO of WazirX.
According to Binance, Shetty made “several inaccurate statements about the ongoing dispute between Zettai and Binance.” The statement wrote:
<blockquote>
 “Mr. Shetty’s allegations make it clear that he is trying to deflect the blame and claim that Binance may somehow be responsible for the losses suffered by WazirX users and creditors as a result of the cyber-attack. This is false, and any suggestion of the sort is outrageously misleading.”
</blockquote>
Binance added that there is “no legal basis” to claim that Binance would be liable for claims against Zettai, nor is Binance part of WazirX’s user agreement. Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/spot-bitcoin-etfs-hackers-risk-caroline-ellison-ftx-prison-hodlers-digest/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/spot-bitcoin-etfs-hackers-risk-caroline-ellison-ftx-prison-hodlers-digest/">Bitcoin ETFs may face hacker threats, Ellison seeks no prison time, and more: Hodler’s Digest, Sept. 8–14</a>

Binance denies blame in $230M WazirX hack, urges user repayments

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