WazirX News: Binance Denies Involvement in Massive $235M Crypto Hack

The post WazirX News: Binance Denies Involvement in Massive $235M Crypto Hack appeared first on Coinpedia Fintech News

WazirX, which was hacked on the 18th of July leading to the loss of $235 million belonging to users,  affected a multi sig wallet used by WazirX and its custodian, Liminal. Binance has not only tried to shift responsibility but also made it quite clear in its latest blog post that apart from not owning WazirX at the time of the hack, it took no responsibility for the platform’s lost assets.

Binance responds to the misleading allegations

The co-founder of WazirX, Nischal Shetty hinted in his affidavit that Binance might be involved in the losses. But, Binance has flatly rejected such claims, stating that they have never had a stake in WazirX or owned it or controlled it in any way. 

Binance also cleared the air on the kind of relationship between the two companies by stating that the companies had no business ties since their disputes. Contrary to what is being peddled out there, WazirX is owned and run by an Indian company called Zanmai InfoTech.

Binance also made it clear that before this period, it offered WazirX wallet services but such services were stopped in January 2023. Subsequently, WazirX selected Liminal as its new custodian partner for user funds. 

Binance has clearly in its blog post stated that it had no control over the decision-making process nor influenced the decision in any way, hence has no blame in the security breach.

Ongoing legal battle

The hack has put WazirX in a very bad financial situation where they can no longer meet the withdrawal demands from users. In response to this, Zettai Pte Ltd, WazirX’s Singapore-based parent company, sought a moratorium in the Singapore High Court, which protects the company from creditors attempting to seize its assets (WazirX users included). 

Nischal Shetty has stated that the hack also deleted nearly half of the platform’s cryptocurrencies and made WazirX insolvent. 

The ongoing legal tussle between WazirX and Binance is still on with both parties presenting their different sides of the story. Binance claims that it has nothing to do with the hack or the amount of money lost by WazirX users, whereas WazirX management and leadership try to shift accountability as users and creditors lose their patience. 

As for WazirX’s users, what is in store for them in the future?

As the consequences of the hack persist, WazirX users are left vulnerable to the consequences of their decisions. Binance has called upon WazirX to own up and do its part to compensate the affected users for the lost money; it has also tried to prop up information about the specifics of the hack. 

The WazirX hack is a notable incident coupled with various issues in the security structure that are still a point of contention between Binance. Still, users and creditors are left to wonder about its outcome, while Binance plays the part of a disinterested party and washes its hands of any responsibility

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