After WazirX users lost $230 million to hackers in July, Binance has, for the first time, issued a statement to officially distance itself from the crypto exchange and its management.
In a statement released on Tuesday, Binance categorically denied any association with the WazirX exchange platform. Interestingly, in India, where WazirX operates, it has been widely reported and understood that Binance, the leading global crypto exchange, owns the platform.
In its statement, Binance said: “The WazirX team and Nischal Shetty continue to mislead WazirX customers and the market regarding the relationship between WazirX and Binance. Binance has not owned, controlled, or operated WazirX at any time, including before, during, or after the July 2024 attack.”
Many investors and WazirX users had hoped to recover the lost funds, expecting Binance to intervene. However, now, as pressure mounts and Nischal Shetty, WazirX CEO, has failed to provide a roadmap or plan to return user funds, Binance was forced to provide an explanation.
Directly putting the blame on CEO Nischal Shetty, Binance alleged: “In his sworn affidavits, Mr. Shetty made several inaccurate statements about the ongoing dispute between Zanmai and Binance. Mr. Shetty’s allegations make it clear that he is trying to deflect the blame and suggest that Binance may somehow be responsible for the losses suffered by WazirX users and creditors as a result of the cyber-attack. This is false, and any suggestion of the sort is outrageously misleading.”
Who Owns WazirX?
According to India’s Ministry of Finance, WazirX is the trade name owned and operated by Zanmai Labs Pvt. Limited in India. It is one of 28 different Virtual Digital Asset Service Providers registered with the regulatory authority.
Bankless Times has access to a response from India’s Finance Ministry, issued after an RTI (Right to Information) was filed concerning the details of all registered entities as per the ‘AML and CFT Guidelines for Reporting Entities Providing Services Related to Virtual Digital Assets.’
While Zanmai Labs is registered with an office address in Mumbai, India, even a quick Google search leads to an automated response from Google, which reads: Zanmai Labs works with Binance and has a license from them to operate INR-Crypto pairs on WazirX.
The Google search result cites an article published by India Today, which says Zanmai Labs is co-operated by Binance.
Now that Binance has issued a statement denying any association with WazirX and Zanmai, such statements are contentious and indeed misleading for users who have lost millions on the platform.
While Binance has issued a statement, the question remains why such information is still available and being reported or passed on by platforms like Google and news portals like India Today.
Currently, from what we know, Binance has not made any efforts to get such misleading information removed. Following the allegations from Binance, we are yet to get a response from the WazirX team.
WazirX Customers Have No Support
Amid the blame game, the customers who have lost millions are now losing all hope of recovery. On July 28, WazirX reported that, following a cyberattack, hackers stole nearly $238 million of user funds. Since then, the platform has not shared accountability or disclosed any information regarding how, or if, they plan to return user funds.
The Indian government, on the other hand, taxes crypto gains heavily but has failed to provide protection to investors. There is no clarity on how the Finance Ministry intends to help investors recover their funds, even partially.
Disclaimer: This article will be updated with more information if received and verified by our editorial team.
