WazirX Breach: Binance Denies Ownership, Calls Out Shetty's Deflection

WazirX, an Indian-origin crypto exchange, suffered a cyber-attack on July 18, 2024, losing $235 million in digital assets, leaving users unable to access their funds over a year later

Binance, the largest crypto exchange globally, has distanced itself from WazirX, stating it never acquired, operated, or controlled the platform, urging WazirX's founders, Zanmai Labs and Zettai Pte Ltd, to take responsibility

The attack involved a compromised multisignature wallet managed by WazirX and a third-party custodian, Liminal Binance was not involved in these arrangements and has rejected claims of responsibility.

Binance outlined key facts, including that it never acquired WazirX, is not part of WazirX's user agreement, and had no involvement in the custodian choice after funds were moved from its infrastructure in 2023

Legal filings and public statements continue, with WazirX seeking a moratorium in Singapore's High Court for protection against legal claims from users and creditors

The incident raises concerns about platform governance, custody transparency, and the risks faced by Indian crypto users in a regulatory gray zone

Binance emphasizes the issue as a user protection concern rather than a dispute between Binance and WazirX, urging accountability from WazirX's operators

The WazirX case serves as a cautionary tale for India's emerging crypto regulatory framework, highlighting the need for trust and accountability in the crypto ecosystem

Users who lost funds continue to demand answers and transparency, while Binance reserves the right to address allegations in legal forums

The incident underscores the importance of trust in the crypto world and calls for WazirX's operators to stop deflecting blame and address users' losses