Bitrabo Editorial
Binance, the global cryptocurrency exchange, has responded to “misleading” allegations from the compromised trading platform WazirX. They have denied any connection to the Indian exchange and called for “accountability” from its management following a significant $235 million cyber theft.
This clarification follows suggestions from WazirX’s team that users may face delays until legal battles between the hacked platform’s parent company and Binance are settled.
WazirX Claims Dispute Could Impact Users
On Tuesday, Binance issued a statement correcting claims by Zettai, the Singapore-based parent company of WazirX, which have been labeled “incorrect and misleading.” Since January 2023, Zettai has been involved in a legal dispute with Binance, the largest cryptocurrency exchange by trading volume.
Previously, WazirX announced that Zettai is seeking a moratorium through the High Court of Singapore to “restructure its liabilities.”
WazirX explained that an approved moratorium would give them time to work on restructuring and repay users.
However, if this application is rejected, users will face uncertainty until the legal situation with Binance is resolved. WazirX also noted that the outcome will influence who is responsible for users’ account balances:
Users may need to wait until the dispute with Binance is resolved, as Zettai currently holds the tokens under dispute (…). Clarity about platform ownership and cryptocurrency ownership will only arise from the dispute’s resolution. If Binance is ruled the owner, they would be liable for the balances; if Zettai is confirmed, they hold that responsibility.
Binance Rejects Any Liability
In its response, Binance refuted any claims of being liable for WazirX users’ balances. The statement stressed that Zettai’s obligations toward WazirX users are “unrelated” to the ongoing dispute with Binance.
Additionally, Binance called out inaccuracies in statements made by Zettai’s owner, Nischal Shetty, in affidavits supporting the moratorium application.
Binance specifically objected to Shetty’s assertion that the outcome of the dispute could affect their ownership of WazirX, implying that Zettai’s creditors would become creditors of Binance as well and that Binance could be responsible for compensating affected users.
Binance clarified that the question of ownership of WazirX will not be settled by the current legal proceedings, as Zettai is not asserting any claims against Binance’s ownership of the hacked platform.
Furthermore, Binance reiterated that it does not own or operate WazirX, asserting, “There is no legal basis for any claim that Binance would be liable for claims.”
Binance demanded that Zettai and the WazirX management take responsibility for the $235 million theft, condemning their attempts to shift blame as “outrageously misleading.”
As reported by Bitrabo, WazirX has been facing criticism since July, with users expressing dissatisfaction over the handling of the hack and the lack of transparency regarding account restoration and trading decisions.
Ultimately, Binance has encouraged users to remain vigilant and seek transparency from platforms regarding their accounts:
Their attempts to shift the blame are a disappointing deflection. However, this should not divert attention from the critical need for the WazirX team to be held accountable for the user funds lost during their management.
