WazirX Hack Update: $230M Loss, Binance Denies claims

WazirX Hack update: $230M Loss, Binance Denies Claims for Breach

Binance has distanced itself from the recent $230 million hack on WazirX, following claims by WazirX co-founder Nischal Shetty that Binance should compensate affected users. In a statement on September 17, Binance clarified that although it had once signed a contract to acquire WazirX’s parent company, Zettai Pte Ltd, the deal never went through. As a result, Binance stated that it had no control over WazirX’s operations or the compromised wallet at the time of the hack. The responsibility for the security breach was placed on WazirX and its custodian, Liminal.

WazirX Hack and Binance's Stance

The hack, which occurred on July 18, targeted a multisignature wallet managed by WazirX and Liminal, leading to the theft of over $230 million. Binance emphasized that it had no involvement in managing the wallet and criticized Shetty for making "misleading statements" about the exchange’s role. Binance also noted that despite its efforts to verify the hack and offer assistance, WazirX did not provide any details about the incident. On August 27, Zettai Pte Ltd sought legal protection in Singapore's High Court, where Shetty admitted that the hack had severely impacted WazirX’s assets.

WazirX Users Hit with Major Losses

In a town hall on September 16, WazirX proposed a restructuring plan, which would result in users facing a 45% loss on their investments. The exchange further frustrated users by refusing to share past profits with those affected. Shetty defended the decision, stating that Zettai does not control WazirX’s profits. However, many users criticized Shetty’s leadership, with some accusing him of avoiding responsibility and demanding compensation. Binance remains firm in its stance, denying any involvement, while WazirX users continue to seek answers and compensation for their losses.

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