Binance, the world's largest cryptocurrency exchange, has denied allegations connecting it to the $230 million hack of Indian exchange WazirX.
Denial of Allegations
Following the high-profile hack of WazirX, the Indian exchange claimed Binance might be responsible for making its creditors whole due to an alleged acquisition and control of WazirX. Binance denied these allegations, releasing an official statement on Sept. 17: '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 and WazirX Relationship
According to the official statement, the first major inaccuracy is related to Binance acquiring the WazirX 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. Binance has never owned, controlled, or operated WazirX at any time, including before, during, or after the alleged hack.' WazirX is managed by Zanmai Labs Pvt Ltd, an India-incorporated entity.
Disproving Incorrect Statements
Binance’s statement followed an Aug. 27 application with the Singapore High Court from Zettai Pte Ltd to prevent WazirX’s creditors from taking collective action against it. Zettai’s main owner is Nischal Shetty, co-founder and CEO of WazirX. Binance stated: '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.'
Binance emphasized that there is no legal basis for claiming that they could be liable for claims against Zettai, and that Binance is not part of WazirX’s user agreement.
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