WazirX Cyber Attack And The Stolen Funds Are Not Related To Binance

Key Points:

• Binance, despite previous ties to WazirX, denies any responsibility for compensating WazirX users.
• WazirX cyber attack resulted in over $230 million in losses and suspension of user withdrawals.

Binance has denied responsibility for the recent $230 million hack of the Indian crypto exchange WazirX.

Read more: WazirX Hacker Address Moves $6.5M Stolen Crypto To Tornado 

Binance Denies Liability for WazirX Cyber Attack Fallout

WazirX, owned by Zanmai Labs, came under a massive cybersecurity attack on July 18 and became the second-biggest cryptocurrency hack this year. The WazirX cyber attack led to the theft of more than $230 million in assets, with the result that trading was suspended and customers’ requests for withdrawals were not met across the exchange.

After the hack, WazirX called on Binance to pay its creditors based on some sort of acquisition agreement between the exchanges. In return, Binance flatly denied the claim, underlining that the deal between Binance and WazirX was never completed.

In a statement, Binance said it wants Zanmai Labs to fully assume responsibility for the hack and provide compensation to the affected WazirX users. “Their responsibility to WazirX users is unrelated to their dispute with Binance”, the company said. Binance expressed that Zanmai’s management running WazirX is solely responsible for the lost funds.

WazirX Seeks Legal Relief as CEO Faces Criticism

WazirX filed for a legal moratorium in Singapore to restructure and work out a recovery plan amidst the aftermath. Partial INR withdrawals have been reopened on the exchange, with crypto trading services not yet fully opened. Its CEO, Nischal Shetty, was also blasted for not acting fast enough during the crisis and consequently reopening the withdrawals.

Speculation has emerged that the WazirX cyber attack may be attributed to hackers associated with North Korea, though this is yet to be disclosed by the exchange. The incident is still under investigation as those affected await further word.