Binance Denies WazirX’s ‘Inaccurate And Misleading’ Claims

Global exchange Binance has addressed the “misleading” claims made by hacked trading platform WazirX, denying any involvement with the Indian exchange and demanding “accountability” from its team after the $235 million crypto heist.

The clarification comes after WazirX’s team suggested that users might have to wait until the dispute between the hacked exchange’s parent company and the largest crypto exchange is settled.

WazirX Claims Zettai’s Dispute Could Affect Users

On Tuesday, Binance shared a statement correcting Zettai’s “inaccurate and misleading statements” concerning the global exchange. WazirX’s 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 “facilitate its intention to restructure its liabilities under a scheme of arrangement.”

Hacked exchange updates users on restructuring status. Source: WazirX

The hacked exchange explained that the moratorium filling would provide “breathing space” if approved while the Singapore-based firm progressed with the restructuring plans and users’ repayment.

However, if the application is denied, customers must wait until the dispute against Binance is resolved.  WazirX also claimed that the dispute’s resolution would determine who was liable for users’ account balances:

Users may have to wait until the dispute with Binance is resolved, as Zettai holds the cryptocurrency tokens under protest (…). It would be only after the dispute with Binance is resolved that the Platform’s users might have some clarity over who owns the Platform and its cryptocurrency tokens. (…) If Binance is deemed the owner, it becomes liable for users’ 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 users’ balances. The blog post clarified that Zettai’s responsibility to WazirX users is “unrelated” to their dispute with Binance.

Moreover, the platform’s team labeled several statements by Zettai’s main owner, Nischal Shetty, made on the two affidavits submitted to support the moratorium application as “inaccurate.”

The global exchange rejected Shetty’s comments suggesting that the dispute’s outcome could determine if they own WazirX. This statement implied that Zettai’s creditors would become Binance creditors and that the exchange could be responsible for making the affected users whole.

The blog post clarifies that WazirX’s 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 “there is no legal basis, in any scenario, to the claim that Binance would be liable for claims.”

Binance demanded Zettai and WazirX’s team take accountability for the $235 million crypto heist, condemning their attempts to allegedly “deflect the blame” with “outrageously misleading” 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