Binance Breaks Silence Amid WazirX-Liminal Dispute Allegations

In an unprecedented turn of events, crypto exchange colossus Binance on Tuesday denied any links to WazirX or Zanmai and Zettai in the wake of users’ stolen funds on the Indian exchange. Notably, the globally leading CEX called on the Indian exchange to hold responsibility for exploited funds, stating clear facts that underscore no relation of its involvement with the firm in or after the attack. Meanwhile, the Nischal Shetty-led exchange continues to tackle scrutiny despite its 66%-34% approach to return users’ funds.

Binance, one of the leading crypto exchanges, dissociates itself from Indian exchange WazirX and its affiliated entities, Zanmai and Zettai, amid allegations of stolen user funds. In a recent statement, the exchange emphasized its lack of involvement with the Indian exchange’s hack and urged it to take responsibility for compensating affected users. Meanwhile, the Nischal Shetty-led exchange faces ongoing scrutiny despite its efforts to refund 66% of lost funds to users.

Binance Calls On Indian Exchange To Take Accountability For Stolen Funds

In an official Binance release dated September 17, the crypto exchange clearly refuted any links to WazirX despite its dispute with Zettai. The globally leading CEX has no “responsibility for the operation of the WazirX platform and the consequences of the alleged hack,” the release added.

For context, the release also spotlighted how Nichal Shetty pointed toward the ongoing dispute between Zettai and Binance in the wake of the exploitation attack. However, “This is false, and any suggestion of the sort is outrageously misleading,” the exchange added, denying any links to the attack and the Indian platform.

Simultaneously, the leading crypto exchange stressed further facts in its release, underscoring ‘zero involvement’ in the $233 million hack on the platform. Binance states that it has never acquired ownership and control over the Indian exchange, “before, during, or after the alleged hack.” Also, the global CEX revealed that it does not hold any user funds belonging to the Indian exchange. “The statements made by Mr. Shetty are inaccurate and misleading,” the release concludes.

Altogether, this recent saga has sparked discussions across the Indian crypto space as users continue to speculate over their funds’ retrieval. Currently, the 66% withdrawal phase is in place, while users continue worrying over the remaining 34% funds stuck on WazirX.

Indian Exchange Hack: A Brief Scoop

Meanwhile, it’s worth mentioning that the Indian exchange witnessed an exploitation attack in July this year. Notably, the compromised wallet was a multisig wallet consisting of signatories of 6 entities. Five of these belonged to the Indian exchange’s team, while one belonged to Liminal, a third-party custody solutions provider for the Indian exchange. Intriguingly, the Indian exchange has denied any loopholes from its side that might have resulted in the attack till now. Nevertheless, investigations continue.

However, Binance was also not involved in the operations of the compromised wallet in any way, the CEX clarified publically.

On the other hand, the hacker continues to garner attention with recent on-chain moves. CoinGape Media recently reported the WazirX exploiter to have moved 10,000 ETH to coin mixer Tornado Cash, sparking discussions across the global crypto community.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.