Global cryptocurrency giant Binance has asserted that it never owned or controlled WazirX before or after the embattled Indian exchange was hacked in July that led to a security breach of more than $230 million.
Binance added that there was no legal basis for the firm to be liable for claims made against the embattled crypto exchange.
It refuted WazirX’s claims that the global exchange owns the company, adding that it does not operate the platform.
Zettai operates WazirX in India.
“While a contract had been signed between the parties, the proposed transaction was never closed due to Zettai’s failure to perform its obligations.
"Binance has never owned, controlled, or operated WazirX at any time, including before, during, or after the alleged hack,” the crypto platform said.
In 2019, the global crypto platform announced it had ‘acquired’ WazirX.
It stated that the acquisition was limited to an agreement to purchase assets and intellectual property of WazirX.
WazirX’s user agreement states that Binance offers services on the platform, including peer-to-peer transactions.
“Binance operated the token-related services, while Zanmai India operated the rupee-related services.
"It subsequently announced its decision to cease providing services in relation to the platform,” Nischal Shetty, founder and chief executive officer of WazirX said in an affidavit.
Binance clarified that it does not provide services on the WazirX platform, adding that the document was incorrect and misleading.
“Binance has objected to the unauthorised references to Binance in the WazirX User Agreement and demanded that references to Binance be removed from the WazirX User Agreement.
"Yet, Shetty, Zanmai, and related entities, who control WazirX, ignored these demands,” Binance said in the blog.
Subsequently, the world’s largest global crypto firm said it would not bear responsibility for the consequences of the cyberattack.
It said that it was not obligated to hold funds of WazirX’s users.
The company added that it has extended assistance to WazirX after the breach was detected.
“We have communicated with the WazirX team on fund recovery and have sought to assist where we can,” a Binance spokesperson said.
“Once WazirX users’ funds were removed from Binance, Shetty and Zettai selected custody solutions provider Liminal to hold these assets.
"Binance was not consulted on this arrangement,” Binance said.
WazirX blamed its wallet service provider Liminal Custody for the cyberattack.
Liminal Custody clarified its systems were not compromised after the hack was first detected.
