Binance Denies Responsibility in $235M WazirX Cyber-Attack, Urges Users to Stay Alert

• Binance clarifies it has never owned or controlled WazirX despite rumors linking it to compensating creditors.
• Nearly half of WazirX’s digital assets were compromised in a cyber-attack, leading to ongoing investigations.
• Zettai, linked to WazirX, filed a moratorium to prevent creditors from collective legal action amid the hack’s fallout.

On July 18, 2024, WazirX, a cryptocurrency platform operated by Zanmai Labs, suffered a cyber-attack leading to a $235 million loss. This attack has resulted in WazirX being unable to fulfill customer withdrawal requests. 

Notably, rumors claiming that Binance is responsible for compensating WazirX creditors have been denied by Binance, which clarifies it has never owned, operated, or controlled the platform at any point. 

The alleged hack has raised concerns among WazirX customers as the company’s leadership, led by Nischal Shetty, continues to mislead the public on the relationship between WazirX and Binance.

Zettai’s Role in WazirX Operations

Zettai, a Singapore-based company linked to Nischal Shetty, filed for a moratorium in Singapore’s High Court to prevent WazirX creditors from taking collective legal action. In an affidavit, Mr. Shetty confirmed that nearly half of WazirX’s digital assets were compromised during the cyber-attack. 

Despite Shetty’s statements, Binance remains clear that it bears no responsibility for WazirX’s operations or its user funds. Moreover, Zettai has repeatedly acknowledged operating WazirX and its connection to the cyber-attack. Mr. Shetty, however, continues to assert incorrect claims about Binance’s involvement.

Binance Denies Ownership of WazirX

While a potential acquisition deal between Binance and WazirX had been in discussion, it never materialized. Binance clarified that it has no contractual ties to WazirX, as suggested by Shetty. Additionally, India’s Directorate of Enforcement confirmed that Zanmai Labs, the entity registered with India’s FIU, is recognized as the official owner of WazirX. 

Binance only provided tech infrastructure for wallet services, which was terminated in January 2023 when WazirX withdrew user funds from Binance wallets. Notably, Binance has no role in the wallets compromised during the attack.

WazirX Cyber-Attack Investigations Ongoing

The compromised wallet, managed by the WazirX team and custody provider Liminal, was a multisig wallet without any involvement from Binance. Liminal’s investigation, conducted by Grant Thornton, found that the attack originated outside their infrastructure. 

Binance has requested a full report on the attack but remains uninformed by the WazirX team. Binance emphasized that any claim linking Binance to the attack’s consequences is false and misleading. Users are urged to critically evaluate all information presented by the WazirX leadership and stay aware of the facts.