Binance Urges WazirX to Compensate Users Following $235 Million Hack

Binance, in a Official statement released today, has denied responsibility for covering up the WazirX scandal. Hacking losses of $235 millionrejecting claims of ownership or control over the exchange and urging its management to resolve the problem.

“The safety and security of user funds is a fundamental responsibility of any cryptocurrency platform. We urge the WazirX team under Zanmai/Zettai to hold WazirX users accountable and compensate them for the funds that have been lost under Zanmai/Zettai’s management,” Binance stated.

Additionally, Binance stressed that it never owned or controlled WazirX, countering the Indian exchange’s claims that Binance should compensate affected users.

“Binance has not owned, controlled or operated WazirX at any time, including before, during or after the July 2024 attack. On the other hand, Zanmai, a company incorporated in India, is the entity that registered the WazirX platform with the Indian FIU in 2023, and is acquaintance by the Enforcement Directorate of India as the owner of WazirX,” Binance said.

Binance added that although a contract had been signed between the parties, the proposed transaction was never completed due to Zettai failing to fulfill its obligations.

In addition to contractual issues, after previously supporting WazirX with technical solutions, Binance confirmed that it is no longer providing wallet services to the exchange following the incident.

“Binance does not and has never provided cryptocurrency-related services to WazirX users as described in the WazirX User Agreement. As we have stated before, Binance had previously “We provide Zanmai wallet services as a technology solution for your trading on WazirX exchange, as we do for many other third parties.”

Although Binance attempted to assist the WazirX team, their efforts to verify the attack went unanswered. The report said:

“We have requested the WazirX team to provide us with their reports on the incident, including all internal reports as well as the alleged report from Mandiant dated August 14, 2024.”

Also, in 2019, Binance acquired certain assets and intellectual property of WazirX to launch multiple fiat-to-crypto gateways. However, as clarified in a report update As of August 2022, this acquisition did not include any stake in Zanmai Labs, the entity that operates WazirX. As a result, WazirX continues to be managed and operated by Zanmai Labs, reinforcing Binance’s position that it does not own or control the exchange.

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