Binance vs. WazirX: War of Words Escalates Over $235 Million Hack

Binance has vehemently denied WazirX’s allegations, emphasizing that it has never owned or operated the platform, even during the July 2024 cyberattack that led to the loss of $235 million in user funds.

In an official statement, Binance urged the WazirX team to take full responsibility for the breach, dismissing claims that Binance was involved in the platform’s operations or the fallout from the hack.

Binance and WazirX Trade Accusations

Binance’s response comes alongside repeated claims by WazirX CEO Nischal Shetty that Binance shares responsibility for the security breach.

On July 18, 2024, WazirX suffered a major hack affecting a multisignature wallet holding user funds. This wallet had multiple signatories from the WazirX team and one from Liminal, a third-party custody provider. Binance, however, denied any involvement in managing this wallet or the platform’s operations.

Read also: WazirX Hackers on the Move Again: $23.3M in ETH Transferred in 24 Hours

Following the hack, panic-stricken WazirX’s customers sent withdrawal requests to retrieve their funds, but the platform was unable to fulfill the demands. Since then, Shetty continued to pin the blame on Binance, alleging that the ongoing dispute between the two companies contributed to the platform’s vulnerabilities. Binance responded by stating that WazirX is owned and operated by Zanmai Labs, a company registered in India and that Binance has no operational control over WazirX.

Binance Condemns WazirX’s Misuse of Name, Demands Compensation for Victims

Binance also stressed that WazirX’s references to it in user agreements were unauthorized and misleading. Despite repeated requests to remove such references, WazirX allegedly used Binance’s name in its legal agreements, creating a false impression of an operational relationship. The exchange confirmed it had provided wallet services to WazirX before January 2023 but all WazirX funds were removed from Binance’s custody after that date.

Calling on WazirX’s leadership to take full responsibility for the hack, Binance urged the platform to compensate the affected users without further delay. It also criticized Shetty for misleading the public about Binance’s role in WazirX’s operations. Binance remains firm in its stance that it is not liable for the hack and continues to emphasize the need for transparency and accountability from the WazirX team.