$235 million disappeared! Binance said it had nothing to do with it because it never owned the Indian exchange WazirX

On September 17, Binance, the world's leading cryptocurrency exchange, issued a formal statement denying any ownership, control, or operational involvement with the Indian cryptocurrency exchange WazirX. This announcement came in response to recent claims suggesting that Binance might be accountable for the $235 million loss WazirX suffered due to a hacking incident in July.

WazirX Faces Major Security Breach: $176 Million in Crypto Assets Stolen

In July, WazirX reported a major security breach resulting in significant financial losses. According to blockchain analysis firm Lookonchain, the stolen assets included:

• 54.3 trillion Shiba Inu (SHIB) tokens, valued at approximately $102 million
• 15,298 Ethereum (ETH), worth around $52.5 million
• 20.5 million Polygon (MATIC) tokens, equating to $11.24 million
• 640.27 billion PEPE tokens, valued at $7.6 million
• 135 million GALA tokens, worth about $3.5 million
• 5.79 million USDT (Tether), a stablecoin

Read more: North Korean hacker group Lazarus Group identified as suspect in WazirX incident, preparations for the theft began eight days in advance

Binance Rejects Blame for WazirX Hack, Claims Misleading Statements and Deflection of Responsibility

Binance has strongly contested the implications that it is responsible for the losses incurred by WazirX. The exchange stated that WazirX had made misleading statements suggesting Binance's involvement in the hack. Binance emphasised that it never owned, controlled, or operated WazirX at any point in time, including before, during, or after the hack.

Source: Binance

The statement continued, "WazirX is attempting to deflect responsibility, which is a disappointing tactic. The WazirX team must be held accountable for the losses under their management." Binance also clarified that despite previous discussions about acquiring WazirX, the proposed acquisition did not proceed because Zettai, a key player in the deal, failed to meet its obligations.

Currently, WazirX is owned by Zanmai Labs Pvt Ltd, an Indian company registered with local authorities. Zanmai is a subsidiary of Zettai, a company based in Singapore and owned by Nischal Shetty. Binance rejected Shetty's proposal that creditors of Zettai could seek compensation from Binance, stating that such claims have no legal foundation.

Binance admitted to providing technical solutions and support to WazirX in the past. However, it firmly denied any responsibility for the breach. The exchange noted that after WazirX removed its funds from Binance’s platform, Shetty and Zettai selected Liminal as their custodian without Binance's involvement.

Read more: WazirX's User Survey on Recovery Options After $230M Hack Sparks Outrage Among Customers and Industry

Binance reported that it had sought detailed reports on the hack from WazirX, including internal documents and a report from Mandiant dated August 14, 2024. These reports were expected to outline the reasons for the attack and details of the affected funds. However, Binance's requests for this information have not been addressed by WazirX.

Binance’s denial of responsibility for the WazirX hack underscores the broader issues of accountability and transparency in the cryptocurrency industry. While Binance asserts its non-involvement, the lack of clear communication and cooperation from WazirX complicates efforts to resolve the situation. The ongoing dispute highlights the need for greater clarity and accountability in handling cybersecurity incidents within the crypto space.