The global exchange Binance has responded to the “misleading” assertions put forth by the compromised trading platform WazirX, distancing itself from the Indian exchange and demanding “accountability” from its management following the $235 million cryptocurrency heist.
This clarification follows WazirX’s statements indicating that users might face delays until the resolution of the conflict between the hacked exchange’s parent organization and the leading cryptocurrency exchange.
WazirX Suggests Zettai’s Dispute May Impact Users
On Tuesday, Binance issued a statement refuting Zettai’s “inaccurate and misleading statements” regarding the global exchange. Zettai, based in Singapore, has been in a legal battle with the largest crypto exchange by trading volume since January 2023.
The hacked Indian exchange previously announced that Zettai filed a moratorium application with the High Court of Singapore to “enable its intention to restructure its liabilities under a scheme of arrangement.”
Hacked exchange updates users on restructuring status. Source: WazirX
The compromised exchange mentioned that if the moratorium is approved, it would provide “breathing space” for the Singapore-based company to advance its restructuring efforts and manage user repayments.
However, should the application be rejected, customers will have to wait until the dispute with Binance is resolved. WazirX further asserted that the outcome of this dispute will govern who holds the responsibility for users’ account balances:
Users may need to await the resolution of the dispute with Binance, as Zettai retains custody of the cryptocurrency tokens under protest (…). Clarity on who owns the Platform and its cryptocurrency tokens will emerge only after the dispute with Binance is settled. (…) If Binance is determined to be the owner, it assumes liability for users’ account balances. Alternatively, if Zettai is confirmed as the owner, it will bear that responsibility.
Binance Disavows Any Responsibility
In its reply, Binance refuted any potential liability for users’ balances. The blog emphasized that Zettai’s obligations to WazirX users are “unrelated” to the ongoing dispute with Binance.
Additionally, WazirX’s team categorically labeled several statements made by Zettai’s main owner, Nischal Shetty, in support affidavits of the moratorium application as “inaccurate.”
The global exchange dismissed Shetty’s implications that the dispute’s resolution could affect ownership of WazirX, which suggested Zettai’s creditors might transition to Binance creditors, placing the exchange in a position of responsibility to compensate the affected users.
The blog clarified that ownership of WazirX is not a matter being settled in the current legal fray, as Zettai or its affiliates are not seeking a declaration asserting that Binance owns or controls the hacked platform.
Furthermore, Binance affirmed that it is neither the owner nor the operator of WazirX, stating that “no legal foundation, in any scenario, supports the claim that Binance would be liable for claims.”
Binance insisted that Zettai and the WazirX team must take responsibility for the $235 million crypto heist, condemning their attempts to allegedly “deflect the blame” with “outrageously misleading” statements.
As reported by Bitcoinist, WazirX has faced growing criticism since July. Users continue to express dissatisfaction with various actions taken post-hack, including a lack of transparency and the decision to reset all balances and revert trades following the incident.
Ultimately, the global exchange urged users to remain vigilant and demand transparency from the platforms:
Their attempts to shift responsibility are a disappointing deflection strategy, but it should not divert attention from the vital issue at hand: the necessity for the WazirX team to be held accountable for user funds lost while under their stewardship.
Binance Coin (BNB) is trading at $543 on the weekly chart. Source: BNBUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
