Binance denies WazirX’s claims that it could refund users if it acquired ownership of the hacked exchange according to a previous agreement.
Binance, the largest global crypto exchange by trading volume, defended itself against claims made by WazirX—an Indian crypto exchange that fell victim to 2024’s second-biggest hack. The Indian exchange made statements about its relationship with Binance, conveying that Binance could make creditors whole if it assumed ownership of the hacked exchange.
WazirX lost over $230 million on July 18 due to the alleged North Korean hacker collective Lazarus Group ransacking its multisig cold wallet. Users have since been unable to reclaim their deposits on the platform. In the meantime, its parent company, Singapore-registered Zettai, filed for a moratorium in Singapore to avoid legal issues while it formulates a plan to pay back its creditors.
In its announcement about the moratorium on August 28, the Indian exchange said, “Zettai, a Singapore-incorporated entity, took custody of the Platform’s assets following an ownership dispute with Binance, which is ongoing. If Binance is determined to be the owner of the Platform and its assets as an outcome of the dispute, the Platform’s users will be creditors of Binance for the crypto assets.”
Binance Breaks Down WazirX’s Misleading Statements
Binance has clapped back at that assertion in a recent statement, clarifying, “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.” The exchange further iterated that it has “never owned, controlled, or operated WazirX at any time.”
According to Binance, its ongoing dispute with WazirX is unrelated to whether it owns the Indian platform. “Binance had previously provided Zanmai wallet services as a tech solution for their operations of the WazirX exchange, as we do for many other third parties. Binance has never operated WazirX,” it explained. Zanmai is the legally registered entity behind WazirX in India. It also mentioned that it terminated the wallet services before the hack occurred.
