A hacking incident hit one of the leading crypto exchange operations, WazirX, on 18 July. In the attack, around $235 million was stolen from the users’ funds. Huge controversy surrounded the hacking into the multi-signature wallet of WazirX and its custodian, Liminal. Binance for its part claimed that it has been strongly denying any involvement in the scandal, saying at no point had it ever been the owner of WazirX when the event took place and also did not hold responsibility over the assets lost.
Binance Company Divergence
Binance relied on its blog as a source to clarify about the hack incident. Binance stated that the said time of the hack when it did not own or operate WazirX. It further reiterated that the earlier relationship of Binance with WazirX had expired much before the said hack event. Binance has further objected statements that claimed the company shared security decision-making with WazirX or even selected its custodian, Liminal.
The custody services were with Binance before January 2023 but was ceased due to a string of disagreements that arose. Binance stepped aside and took its custody services to Liminal. According to a statement by Binance through the blog post, it is not liable for the breach in security as well as the losses incurred owing to the attack.
WazirX Co-founder’s Accusations
Matters have been compounded by statements from WazirX co-founder Nischal Shetty in an affidavit; he seemed to let the cat out of the bag that there was some kind of connection which Binance had had with financial losses. This increased more speculation and tension between the two firms. Besides, Binance does not budge from its stance of not being involved because of claims that WazirX is now wholly owned by an Indian firm, Zanmai InfoTech.
Financial Crisis and Cost of Litigation
The hacking waves now put WazirX in sharp financial crisis. The parent company Zettai Pte Ltd was compelled to file for protection with the Singapore High Court granting a moratorium to safeguard the users’ assets, including the siphoned off money, at the court itself after the portal received pending withdrawal requests from its users.
Shetty reveals how the hack almost sucked half of WazirX’s cryptocurrency reserves dry, exacerbating deep issues that had been plaguing the platform on the question of insolvency.
Legal tussle between WazirX and Binance continues with both sides spinning contrasting narratives over the hack and its consequences.
WazirX Users Can Expect What???
In this way, the WazirX users have been placed in a tight spot. They have remained unable to access their funds or recover any of it for ages and the litigations continue. Binance has asked WazirX to stand up for responsibility and compensate the users who had been affected through this incident while being more forthcoming about what actually happened.
The WazirX hack shows pressing security issues on the platform and does not help, reminding of the problems of accountability within the rapidly growing crypto industry. In most conflicts, both Binance and WazirX are now fighting over who is responsible and seeking financial restoration while the users and creditors are waiting for clear and definite resolution.
