Global exchange Binance has addressed the âmisleadingâ claims made by hacked trading platform WazirX, denying any involvement with the Indian exchange and demanding âaccountabilityâ from its team after the $235 million crypto heist.
The clarification comes after WazirXâs team suggested that users might have to wait until the dispute between the hacked exchangeâs parent company and the largest crypto exchange is settled.
WazirX Claims Zettaiâs Dispute Could Affect Users
On Tuesday, Binance shared a statement correcting Zettaiâs âinaccurate and misleading statementsâ concerning the global exchange. WazirXâs parent company, Singapore-based company Zettai is in a legal dispute with the largest crypto exchange by trading volume since January 2023.
The hacked Indian platform previously announced that Zettai filed an application with the High Court of Singapore for a moratorium to âfacilitate its intention to restructure its liabilities under a scheme of arrangement.â
Hacked exchange updates users on restructuring status. Source: WazirX
The hacked exchange explained that the moratorium filling would provide âbreathing spaceâ if approved while the Singapore-based firm progressed with the restructuring plans and usersâ repayment.
However, if the application is denied, customers must wait until the dispute against Binance is resolved. Â WazirX also claimed that the disputeâs resolution would determine who was liable for usersâ account balances:
Users may have to wait until the dispute with Binance is resolved, as Zettai holds the cryptocurrency tokens under protest (âŚ). It would be only after the dispute with Binance is resolved that the Platformâs users might have some clarity over who owns the Platform and its cryptocurrency tokens. (âŚ) If Binance is deemed the owner, it becomes liable for usersâ account balances. If Zettai is confirmed as the owner, it holds that liability instead.
Binance Rejects Liability
In its response, the exchange denied the possibility of being liable for usersâ balances. The blog post clarified that Zettaiâs responsibility to WazirX users is âunrelatedâ to their dispute with Binance.
Moreover, the platformâs team labeled several statements by Zettaiâs main owner, Nischal Shetty, made on the two affidavits submitted to support the moratorium application as âinaccurate.â
The global exchange rejected Shettyâs comments suggesting that the disputeâs outcome could determine if they own WazirX. This statement implied that Zettaiâs creditors would become Binance creditors and that the exchange could be responsible for making the affected users whole.
The blog post clarifies that WazirXâs ownership is not an issue that will be resolved in the ongoing legal battle, as Zettai or its affiliates are not seeking a declaration that Binance owns or controls the hacked platform.
Moreover, the exchange declared it is not the owner, controller, or operator of WazirX, stating that âthere is no legal basis, in any scenario, to the claim that Binance would be liable for claims.â
Binance demanded Zettai and WazirXâs team take accountability for the $235 million crypto heist, condemning their attempts to allegedly âdeflect the blameâ with âoutrageously misleadingâ statements.
As reported by Bitcoinist, WazirX has faced backlash sice July. Users have continued to voice their discontent with several steps taken after the hack, including the lack of transparency and the decision to restore all balances and undo traders after the incident.
Ultimately, the global exchange urged users to stay informed and continue to seek transparency from the platforms:
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 Coin (BNB) is trading at $543 in the weekly chart. Source: BNBUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com