Binance has firmly denied any claims of ownership, control, or involvement with the major Indian cryptocurrency exchange WazirX, both before, during, and after the cyberattack that occurred in July 2024. This attack resulted in a unbearable financial impact, with approximately $235 million of user funds being questioned and millions of users left unable to access their crypto assets.
The legal dispute between Binance which is founded by Cz and WazirX which is founded by Nischal shetty took a turn when WazirX, represented by its arm Zettai Pte Ltd, filed an application with the Singapore High Court. In this court filing, Zettai accused Binance of being responsible for compensating users for the significant losses they suffered due to the cyberattack on WazirX.
Binance, however, strongly disagrees with these accusations. The company asserts that it should not be held accountable for the losses incurred during the attack. Binance argues that it is not responsible for compensating affected users and that the responsibility for dealing with the outcome from the attack lies entirely with WazirX’s management team, which operates under the name Zanmai/Zettai.
Binance has consistently clarified that it has neither acquired nor controlled WazirX at any point. The proposed acquisition of WazirX by Binance fell through because Zettai failed to meet its obligations, a development that led to the abandonment of the acquisition deal. Zanmai Labs Pvt Ltd, an Indian company, continues to own and operate WazirX, as confirmed by India’s Directorate of Enforcement. Nischal Shetty, WazirX’s co-founder, has publicly affirmed that he remains actively involved in managing WazirX.
Binance stressed that it is not responsible for the management of WazirX’s user funds or any claims related to these funds. The ongoing dispute between Zettai and Binance does not imply that Binance holds any accountability for WazirX’s operations or the losses incurred. Binance has no legal obligation to compensate Zettai’s creditors, reinforcing its position that it is not involved in the financial or operational aspects of WazirX.
WazirX user agreement :
A key point of contention is the allegation that Binance provides cryptocurrency-related services to WazirX users, as stated in WazirX’s User Agreement. Binance has denied these allegations, asserting that it has never provided such services. Instead, Binance’s involvement was limited to supplying wallet services to Zanmai, which is standard practice for virtual asset service providers globally
Binance has criticized the references to its services in the WazirX User Agreement, labeling them as unauthorized. The company has repeatedly objected to these references and requested their removal. However, Mr. Shetty and Zanmai have ignored these requests, leading to ongoing confusion among users.
Binance stresses that it does not control WazirX and cannot adapt its User Agreement. The ongoing legal dispute with Zettai does not involve Binance becoming a party to this agreement.
Wallet Services and Custody of Funds :
Binance provided wallet services to Zanmai as part of its technological solutions, similar to the services offered to other virtual asset service providers. Following Binance’s notice in January 2023, Zanmai appointed Liminal as the custodian for WazirX’s user funds. Binance was not involved in the decision to appoint Liminal or in the custody of these funds.
Binance has also disprove claims that it is responsible for the cyberattack. The company had requested the removal of WazirX customer funds from its wallets before the incident occurred. These funds were transferred to Liminal, a custodian selected by Shetty and Zettai, with which Binance had no involvement. Investigations have shown that the attack did not originate from Liminal’s infrastructure, further distancing Binance from any responsibility related to the breach.
Binance has accused Shetty and Zettai of spreading wrong information about its role with WazirX. The company has repeated that it has never owned, controlled, or operated WazirX, including during the cyberattack. Binance urges users to critically assess the wrong statements and its commitment to transparency and user protection.
In summary, Binance has firmly rejected Zettai’s accusations and underscored that WazirX’s management is responsible for handling the outcome from the attack and compensating affected users. Binance maintains its stance of non-liability concerning the incident, asserting that it is not accountable for the operations or consequences associated with WazirX. The company remains dedicated to ensuring transparency and protecting its users beyond the ongoing controversy.
