Global cryptocurrency exchange Binance has addressed what it calls “misleading” claims made by the hacked trading platform WazirX. Binance categorically denies any involvement with the Indian exchange and is demanding “accountability” from its team following a $235 million crypto heist.
This clarification comes in the wake of WazirX’s statements suggesting that users might have to wait until the dispute between the hacked exchange’s parent company and Binance is settled.
WazirX Claims Zettai’s Dispute Could Affect Users
On Tuesday, Binance released a statement correcting Zettai’s “inaccurate and misleading statements” about the global exchange. WazirX’s parent company, Zettai, has been in a legal dispute with Binance since January 2023. The hacked Indian platform had previously announced that Zettai filed an application with the High Court of Singapore for a moratorium to “facilitate its intention to restructure its liabilities under a scheme of arrangement.”
WazirX updated its users on the status of the restructuring, explaining that if the moratorium filling is approved, it would provide “breathing space” while the Singapore-based firm progresses with its restructuring plans and users’ repayment. However, if the application is denied, customers may have to wait until the dispute with Binance is resolved.
WazirX also claimed that the dispute’s resolution would determine who is liable for users’ account balances:
Users may have to wait until the dispute with Binance is resolved, as Zettai holds the cryptocurrency tokens under protest. It would be only after the dispute with Binance is resolved that the platform’s users might have some clarity over who owns the platform and its cryptocurrency tokens. If Binance is deemed the owner, it becomes liable for users’ account balances. If Zettai is confirmed as the owner, it holds that liability instead.
Binance Rejects Liability
In its response, Binance denied the possibility of being liable for users’ balances. The blog post clarified that Zettai’s responsibility to WazirX users is “unrelated” to their dispute with Binance. Additionally, Binance labeled several statements by Zettai’s main owner, Nischal Shetty, as “inaccurate” in the affidavits submitted to support the moratorium application.
The global exchange rejected Shetty’s comments suggesting that the dispute’s outcome could determine if they own WazirX. This statement implied that Zettai’s creditors would become Binance creditors and that the exchange could be responsible for making the affected users whole.
The blog post clarified that WazirX’s ownership is not an issue to be resolved in the ongoing legal battle, as Zettai or its affiliates are not seeking a declaration that Binance owns or controls the hacked platform. Binance stated:
There is no legal basis, in any scenario, to the claim that Binance would be liable for claims.
Binance demanded that Zettai and the WazirX team take accountability for the $235 million crypto heist, condemning their attempts to allegedly “deflect the blame” with “outrageously misleading” statements.
As reported by Bitcoinist, WazirX has faced backlash since July. Users have continued to voice their discontent with several steps taken following the hack, including the lack of transparency and the decision to restore all balances and undo trades after the incident.
Ultimately, the global exchange urged users to stay informed and continue to seek transparency from the platforms involved:
Their attempts to shift responsibility is a disappointing deflection tactic, but it should not distract anyone from the glaring issue to be addressed here: the need for the WazirX team to be held accountable for user funds lost under their management.
