Key Details of the WazirX Hack
In July 2024, Indian cryptocurrency exchange WazirX suffered a devastating security breach resulting in $235 million of customer funds being stolen. Blockchain analytics firm LookonChain identified the stolen assets included:
- 5.43 trillion SHIB ($102 million)
- 15,298 ETH ($52.5 million)
- 2.05 million MATIC ($11.24 million)
- 6.4 billion PEPE ($7.6 million)
- 135 million GALA ($3.5 million)
- 5.79 million USDT
Binance's Official Statement
Binance issued a forceful declaration on September 17, 2024, distancing itself from WazirX:
👉 "We never owned, controlled, or operated WazirX at any point," emphasized the exchange in its public statement. The company labeled WazirX's suggestions of Binance's involvement as "highly misleading" and part of a "disappointing deflection strategy."
Critical Clarifications:
- No Acquisition Completed: While negotiations occurred, Binance never finalized the purchase of WazirX due to unmet obligations by Zettai (WazirX's parent company).
- Current Ownership: WazirX is owned by India-based Zanmai Labs Pvt Ltd, a subsidiary of Singapore's Zettai Holdings.
- Legal Rejection: Binance categorically denied liability for Zettai's creditors, calling such claims "legally baseless."
WazirX's Response Efforts
Facing mounting pressure, WazirX sought a pause order from Singapore's High Court in early September 2024 to:
- Facilitate restructuring negotiations
- Develop compensation plans
- Engage with potential investors
Technical Relationship Explained
Binance acknowledged providing limited technical support but stressed:
- No involvement in WazirX's user agreements
- Repeated requests to remove Binance references from WazirX documents went unheeded
- Zero access to internal hack reports despite multiple requests
Frequently Asked Questions
Q1: Could Binance be legally forced to cover WazirX's losses?
A: Extremely unlikely. Binance maintains no ownership ties or contractual obligations that would create liability.
Q2: What should WazirX users do now?
A: Monitor official communications from WazirX regarding compensation plans and consider legal counsel if funds remain unrecovered.
Q3: How does this affect Binance's reputation?
A: The swift denial and transparency likely mitigate brand risk, though it highlights the importance of clear partnership boundaries in crypto.
Industry Implications
This case underscores three critical lessons for crypto investors:
- Exchange Due Diligence: Verify ownership structures and insurance protections
- Asset Security: Large holdings warrant cold storage solutions
- Regulatory Clarity: Emerging markets need stronger consumer safeguards
👉 For secure trading alternatives, explore trusted platforms with proven track records and transparent operational structures.