The crypto industry has seen a massive wave of finger-pointing between Binance and WazirX after one of the most high-profile crypto hacks of 2024.
WazirX wants Binance to take responsibility because the exchange giant allegedly owns its domain name, AWS servers, and profits.
Binance has vehemently denied these accusations, shifting the blame onto WazirX's management.
The ongoing dispute has cast a shadow over the repayment plans, with investors set to receive less than 60% of their crypto portfolios.
Binance has just denied any responsibility for one of the most high-profile hacks of 2024.
In July, WazirX, an India-based exchange, got hit with an exploit that saw the attacker(s) steal a staggering $230 million.
Soon after the heist, the Indian exchange claimed that Binance should be held accountable under accusations that the crypto exchange giant had acquired and controlled WazirX long before the hack.
As such, WazirX wants Binance to step in and repay investors for the funds lost.
In response, Binance issued a statement denying these claims, urging WazirX to take responsibility and stop shifting blame.
Here are the latest updates about the investor repayment plans and highlights from Binance's statement.
WazirX's CEO and co-founder, Nischal Shetty, took to Twitter in August, shortly after the hack, to state that the exchange was acquired and is therefore owned by Binance.
In addition, Shetty alleges that Binance owns WazirX's domain name, has root access to its AWS servers, owns its Crypto assets, and claims all its crypto profits.
Binance versus WazirX
In essence, Shetty's accusations center around the premise that Binance acquired WazirX before the hack and should bear the responsibility of repaying its creditors afterward.
However, Binance retorted in a statement it released on 17 September, stating that WazirX’s accusations are an attempt to deflect blame:
“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.”
Binance maintained that WazirX's management should be the one held responsible for the hack and nobody else.
Binance also attacked the argument that it acquired the hacked exchange, stating that while there were ongoing discussions and even a signed contract about a possible buyout, there was never any finalization. The statement clarified:
“Binance never acquired or controlled WazirX. While a contract had been signed between the parties, the proposed transaction never closed due to Zettai's failure to perform its obligations. Binance has never owned, controlled, or operated WazirX at any time including before, during or after the alleged hack.”
The accused exchange further stated that Zanmai Labs Pvt Ltd, an Indian entity, controls WazirX.
Furthermore, Zanmai Labs which is led by WazirX's co-founder and CEO Nischal Shetty, was responsible for safeguarding user funds, not Binance.
Binance claims that Shetty, the main owner of Zettai Pte Ltd has been making “several inaccurate statements” about the ongoing dispute.
"Mr. Shetty's allegations make it clear that he is trying to deflect the blame and claim that Binance may somehow be responsible for the losses suffered by WazirX users and creditors as a result of the cyber-attack. This is false and any suggestion of the sort is outrageously misleading."
While both parties continue to point accusing fingers, the unfortunate reality for WazirX users is that the likelihood of repaying slows by the minute.
During a recent town hall meeting that was streamed on YouTube, the exchange’s legal team addressed the chances of recovery.
According to the latest updates, users will only be able to restore up to 57% of their crypto—far from the total amount they lost in the hack.
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