On July 18, cryptocurrency exchange WazirX was hacked, resulting in the loss of $235 million in user funds. The attack has drawn attention not only from users but also from other market participants, including Binance.
WazirX and Binance Relations
WazirX co-founder Nischal Shetty, in an affidavit, hinted that Binance might be linked to the losses. But Binance firmly denied this, stating it has never owned or controlled WazirX. Binance further clarified that its relationship with WazirX ended after previous disputes. Contrary to rumors, WazirX is owned by an Indian company called Zanmai InfoTech. Before their separation, Binance provided wallet services to WazirX, but these services ended in January 2023. Afterward, WazirX chose Liminal as its new custodian for user funds.
WazirX’s Financial Troubles Post-Hack
The hack has left WazirX in a difficult financial position, unable to fulfill user withdrawal requests. In response, WazirX’s parent company, Zettai Pte Ltd, filed for a moratorium in the Singapore High Court, protecting its assets—including WazirX user funds—from creditors. Nischal Shetty revealed that nearly half of the platform’s cryptocurrency holdings were lost in the attack, leaving WazirX insolvent. The legal conflict between WazirX and Binance is ongoing, with both sides offering different versions of events. Binance insists it had no role in the hack or the losses suffered by WazirX users, while WazirX’s management continues to face pressure from users and creditors.
Future of WazirX Users
As the fallout from the hack continues, WazirX users remain in a vulnerable position. Binance has urged WazirX to take responsibility and compensate users, while also pushing for more details on the hack. The WazirX hack highlights security issues within the platform. As both Binance and WazirX shift blame, users and creditors are left waiting for a resolution, while Binance stays firm on its stance of non-involvement.
The WazirX hack has led to significant losses and disputes with Binance. Users and creditors continue to wait for a resolution as both sides stick to their positions.
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