Binance has issued a public statement addressing misleading claims made by WazirX’s parent company Zettai due to recent events involving a cyberattack on the WazirX platform.
Binance Addresses Zettai's False Claims About WazirX, Calls for Accountability
Binance clarified that it was not involved in WazirX's activities, emphasizing that Zettai and WazirX management should be held accountable for the loss of user funds resulting from the attack.
On July 18, 2024, WazirX reported a cyberattack that compromised a wallet that held user funds. The wallet was controlled through a multi-signature process involving five members of the WazirX team and a representative from third-party custodian Liminal.
Binance was not involved in any operational aspect of this wallet or the attack, the company said in a statement.
Despite allegations from WazirX and Zettai founder Nischal Shetty suggesting Binance’s involvement, Binance has categorically denied any connection.
The statement also emphasized that Binance did not own, control or operate WazirX at any time, including before or after the attack.
The attack, which occurred in July, resulted in the loss of approximately $235 million in user funds. Following this attack, WazirX struggled to meet withdrawal requests from customers.
On August 27, 2024, Zettai Pte Ltd filed a moratorium application with the High Court of Singapore in an attempt to prevent creditors, including WazirX users, from taking legal action.
In legal filings, Mr. Shetty acknowledged that nearly half of WazirX’s digital assets were stolen in the hack and that the platform is currently unable to fulfill its customers’ withdrawal requests. Despite this, he continued to make claims about Binance’s role that Binance described as wildly misleading.
*This is not investment advice.