On July 18, WazirX was hacked, resulting in the loss of $235 million in user funds. The attack targeted a multi-signature wallet managed by WazirX and its custodian, Liminal. Binance, however, has distanced itself from the incident, stating in a recent blog post that it neither owned WazirX during the hack nor has any responsibility for the lost assets.
Here’s everything you need to know.
WazirX Co-founder Suggests Binance Involvement
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. The exchange stressed that it had no involvement in WazirX’s operations at the time of the hack.
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.
Binance Rejects Responsibility
In its blog post, Binance emphasized that it had no influence over WazirX’s decisions, including its choice of Liminal as a custodian. As a result, Binance claims no responsibility for the security breach or the lost funds.
WazirX Faces Financial Trouble After the 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.
What Lies Ahead for 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.
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Whose side are you on? Do you believe Binance’s claims of non-involvement, or do you think they have something to hide? Share your opinion.
