Binance urges WazirX to compensate users after $235M hack
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Binance denied the claims from the Indian exchange and asserted that it neither owns nor controls WazirX. Binance insists WazirX compensate users affected by hack with $235 million.
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In an official statement released today, Binance has denied responsibility for covering WazirX's $235 million hacking loss, rejecting claims of ownership or control of the exchange and urging management to resolve the issue.
“Safety and protection of user funds is a fundamental responsibility of any crypto platform. We urge the WazirX team under Zanmai/Zetai to hold WazirX users accountable and compensate Zanmai/Zetai management for lost funds,” Binance said.
Binance also emphasized that it did not own or control WazirX, contradicting the Indian exchange's claim that Binance should compensate the affected users.
“Binance did not own, control or operate WazirX at any time, including before, during and after the July 2024 attack. On the other hand, Zanmai, a company incorporated in India, has registered the WazirX platform with India's FIU in 2023 and has been recognized as the owner of WazirX by the Indian Enforcement Directorate, Binance said.
Binance added that although a contract had been signed between the parties, the proposed transaction had not been completed due to Zetai's failure to meet its obligations.
In addition to contractual issues, after previously supporting WazirX with technical solutions, Binance has confirmed that it will no longer provide wallet services to the exchange following the incident.
“Binance does not and has never provided crypto-related services to WazirX users as stated in the WazirX User Agreement. As we have previously stated, Binance has previously provided Zanmai wallet services as a technology solution for their WazirX exchange operations, as we have for many other third parties.”
Although Binance tried to help the WazirX team, its efforts to confirm the hack went unanswered. The report said.
“We have asked the WazirX team to provide us with their report on the incident, including all internal reports as well as the report from Mandiant dated August 14, 2024.”
Additionally, in 2019, Binance acquired certain assets and intellectual property of WazirX to launch several fiat-to-crypto gateways. However, as explained in an August 2022 update to the report, this acquisition did not include any equity in Zanmai Labs, which operates WazirX. Thus, WazirX continues to be managed and operated by Zanmai Labs, reinforcing Binance's position that it does not own or control the exchange.
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