Cryptocurrency giant Binance has firmly distanced itself from the recent $230 million security breach at Indian exchange Wazirx, asserting that it never had ownership or control over the platform. The statement came in response to widespread confusion following the July hack that compromised millions in cryptocurrency.
Binance emphasized that there was no legal ground for holding it liable for any claims stemming from the hack. The global exchange reiterated that it did not operate Wazirx, stating, “Binance has never owned, controlled, or operated Wazirx at any time, including before, during, or after the alleged hack.”
Ownership Controversy Over Wazirx
The confusion surrounding Binance’s involvement with Wazirx dates back to 2019 when Binance announced it had ‘acquired’ the Indian exchange. However, Binance clarified that the acquisition was limited to an agreement for the purchase of certain assets and intellectual property, not the full operation or control of Wazirx.
Zettai, a separate entity, is responsible for running Wazirx in India. “While a contract had been signed between the parties, the proposed transaction was never closed due to Zettai’s failure to perform its obligations,” Binance explained in its statement. This explanation underlines the limited nature of the 2019 acquisition, which was never fully realized.
Misleading User Agreement
Further muddying the waters, Wazirx’s user agreement suggests that Binance is still involved in offering services on the platform, particularly with regard to token-related transactions. In an affidavit, Wazirx founder and CEO Nischal Shetty confirmed that “Binance operated the token-related services, while Zanmai India operated the Rupee-related services.” Despite this, Shetty noted that Binance eventually ceased providing services connected to the platform.
Binance, however, has strongly disputed the contents of this user agreement, calling the document “incorrect and misleading.” The global exchange further claimed that it has formally objected to the unauthorized use of Binance’s name in Wazirx’s user agreement and demanded its removal. “Yet, Shetty, Zanmai, and related entities, who control Wazirx, ignored these demands,” Binance stated in a blog post.
No Liability for Hack Fallout
As the fallout from the July hack continues to unfold, Binance has firmly stated that it will not be held accountable for any losses suffered by Wazirx users. “Binance has objected to the unauthorized references to Binance in the Wazirx User Agreement and demanded that references to Binance be removed,” the exchange reiterated. Binance’s statement draws a clear line, signaling that it will not assume responsibility for the breach’s aftermath.
The breach, which resulted in over $230 million in cryptocurrency losses, has sparked concern across the crypto community in India and globally. As investigations continue, Binance’s firm stance distances the company from the liabilities tied to Wazirx, leaving the embattled Indian exchange to manage the crisis on its own.
