SUMMARY
- Binance accuses WazirX of misleading customers over their relationship following the $230 million hack.
- Binance clarifies it has never owned, controlled, or operated WazirX at any point.
- Binance calls on WazirX to compensate users for the stolen funds and stop shifting responsibility.
Global cryptocurrency exchange Binance has publicly accused WazirX and its founder, Nischal Shetty, of misleading customers and the market regarding their relationship in the wake of the recent $230 million hack. The controversy follows statements made by Shetty’s legal team during a townhall, asserting that Binance controlled a majority of WazirX’s financial operations, restricting the company’s ability to repay affected customers.
In a blog post, Binance clarified that it has never owned, controlled, or operated WazirX at any point, including before, during, or after the July 2024 crypto theft. Binance’s CEO, Changpeng Zhao, had previously stated in August 2022 that his firm did not own any equity in WazirX, contradicting a 2019 announcement that claimed Binance had acquired the platform.
The hack, which targeted one of WazirX’s multisig wallets, resulted in the theft of $230 million in crypto assets. Binance has now called on WazirX’s parent company, Zanmai/Zettai, to compensate users affected by the breach, stressing that WazirX’s accountability to its users is independent of any dispute with Binance.
In the blog post, Binance urged the WazirX team to stop deflecting responsibility and focus on compensating customers whose funds were lost under Zanmai/Zettai’s management. Binance reiterated that WazirX’s ongoing attempts to link Binance to its financial responsibilities were misleading and a distraction from the real issue of user fund recovery.
The hack and subsequent blame-shifting have only intensified the long-standing dispute between the two companies, with Binance highlighting the need for greater accountability from WazirX.
