Global exchange Binance has addressed “misleading” claims made by hacked exchange WazirX, denying any involvement with the Indian exchange and demanding “accountability” from its team after $235 million worth of crypto was stolen.
The clarification comes after the WazirX team suggested that users may have to wait until the dispute between the parent company of the hacked exchange and the largest cryptocurrency exchange is settled.
WazirX claims Zettai dispute could impact users
Tuesday, Binance subscriber Statement correcting Zettai’s “inaccurate and misleading statements” about the global exchange. WazirX’s parent company, Singapore-based Zettai, has been in a legal dispute with the world’s largest cryptocurrency exchange by trading volume since January 2023.
The Indian platform was hacked before. It was announced Zitai has applied to the High Court of Singapore for an interim stay “to facilitate its intention to restructure its obligations under a scheme of arrangement.”
Hacked exchange updates users on restructuring status. Source: WazirX
The hacked exchange explained that filling the moratorium period would provide “breathing space” if approved while the Singapore-based company continues to implement restructuring plans and pay users dues.
However, if the request is denied, customers must wait until the dispute against Binance is resolved. WazirX also claimed that resolving the dispute will determine who is responsible for users’ account balances:
Users may have to wait until the dispute with Binance is resolved, as Zettai holds the cryptocurrency tokens under protest (…). Platform users will not have any clarity on who owns the platform and the cryptocurrency tokens until the dispute with Binance is resolved. (…) If Binance is deemed the owner, it becomes responsible for the balances of users’ accounts. If Zettai is confirmed as the owner, it takes on that responsibility instead.
Binance denies responsibility
In its response, the exchange denied that it could be held liable for user balances. The blog post explained that Zettai’s liability to WazirX users “has nothing to do” with its dispute with Binance.
Furthermore, the platform team described several statements made by Nishal Shetty, the principal owner of Zitai, in the two affidavits filed in support of the stay request as “inaccurate.”
The global exchange rejected Shetty’s comments, noting that the outcome of the dispute could determine whether it owns WazirX. This statement means that Zettai’s creditors will become Binance’s creditors and the exchange could be liable to compensate affected users.
The blog post explains that the ownership of WazirX is not an issue that will be resolved in the ongoing legal battle, as neither Zettai nor its affiliates are seeking a declaration that Binance owns or controls the compromised platform.
Furthermore, the exchange stated that it is not the owner, controller, or operator of WazirX, stating that “there is no legal basis, in any scenario, to allege that Binance will be liable for the claims.”
Binance has called on Zettai and WazirX to take responsibility for the theft of $235 million worth of cryptocurrencies, condemning their alleged attempts to “shift blame” with “grossly misleading” statements.
As Bitcoinist reported, WazirX has faced backlash since July. Users have continued to express their dissatisfaction with the many steps taken after the hack, including the lack of transparency and the decision to restore all balances and cancel traders following the incident.
Ultimately, the global exchange urged users to stay informed and continue to seek transparency from platforms:
Their attempts to shift responsibility are a disappointing diversionary tactic, but they shouldn’t distract anyone from the glaring issue that needs to be addressed here: the need to hold the WazirX team 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
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