Binance criticises WazirX for deceiving clients following a $230 million fraud

Binance has addressed the recent $230-million hack involving WazirX, claiming that the WazirX team and founder Nischal Shetty have been misleading customers and the market about their relationship.

Following the theft of crypto assets from a multisig wallet on July 18, Shetty and his legal team stated in a town hall meeting that Binance controlled the majority of revenues, cash flows, and profits of WazirX's parent company, Zettai.

After the fraud, the controversy has been more intense, casting doubt on the firms' partnership. This, they argued, limited Binance's ability to repay affected customers from its own resources.

In 2019, Binance announced its acquisition of WazirX, but CEO Changpeng Zhao later clarified on X (formerly Twitter) in August 2022 that Binance did not own any equity in WazirX nor control its operations. In a recent statement, Binance reiterated that "the WazirX team and Nischal Shetty continue to mislead WazirX customers and the market regarding the relationship between WazirX and Binance."

They emphasized that Binance has never owned, controlled, or operated WazirX at any time, including before, during, or after the $230-million hack in July 2024.