Binance Denies Ownership of WazirX, Distances Itself from $235 Million Hack

Binance, the world’s largest cryptocurrency exchange, has denied any ownership or responsibility for Indian platform WazirX in the wake of a $235 million hack. The exchange urged WazirX to address the loss of user funds, following claims made by WazirX owner Nischal Shetty.

In a blog post released today, Binance clarified its relationship with WazirX after Shetty’s sworn statements to the Singapore High Court suggested Binance held some responsibility for the Indian platform. Shetty’s company, Zettai Pte Ltd, is linked to WazirX and recently applied for a moratorium to prevent creditor action. Binance, however, has maintained since 2022 that it never completed the acquisition of WazirX.

Binance disputes claims, urges WazirX to take responsibility

Binance rejected the allegations made in Shetty’s affidavits, describing them as an attempt to deflect attention from the real issue—the loss of user funds. The exchange emphasised that WazirX should be held accountable for the hack and user fund losses, stating:

“Attempts to shift responsibility are a disappointing deflection, but they should not distract from the need for the WazirX team to be held accountable.”

WazirX has yet to respond to these remarks.

related reading：WazirX Files FIR After $234M Cyber Attack on Crypto Wallet

Clarifying the relationship between Binance and WazirX

Binance detailed its side of the story, explaining that although it signed an agreement with WazirX, Zettai failed to fulfil the terms required to complete the acquisition. As a result, Binance insists it has never owned, controlled, or operated WazirX. It further distanced itself from WazirX’s customer agreements, noting that any references to Binance within those contracts were unauthorised.

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Regarding the hack itself, Binance stated that, in January 2023, it instructed Zanmai, a company affiliated with WazirX, to withdraw funds from Binance-hosted wallets. According to Binance, these withdrawals were completed before the attack, meaning it bears no responsibility for the lost funds.

Custody provider Liminal also denies responsibility

The funds in question were stored with Liminal, a custody provider selected by Shetty and Zettai, without Binance’s involvement. Liminal has similarly denied responsibility for the breach. Binance stated that it has requested, but not received, relevant reports from WazirX, including one from cybersecurity firm Mandiant, dated August 14, 2024.

Binance reiterated that resolving the hack and addressing users’ concerns are matters for WazirX, separate from any ongoing dispute over ownership.

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

Questions remain unanswered

Binance’s refusal to accept responsibility, coupled with WazirX’s silence, leaves many questions about the management and security of user funds. Without further clarity, confidence in WazirX’s operations may remain strained.