WazirX Hack Controversy: Was Binance to Blame? Here’s the Truth

In a surprising development in the WazirX hack case, the hackers have laundered $32 million worth of stolen Ether (ETH) using Tornado Cash. Since Monday, $15,000 ETH has been moved in three separate transactions of 5,000 ETH each, according to Peckshield alerts. Despite these large transfers, the hacker’s wallet still holds over $50 million in various tokens, mainly ETH.

Zettai’s Restructuring Efforts Amid Controversy

Nischal Shetty, founder of WazirX and director of Zettai Pte Ltd, has submitted a third affidavit regarding the company’s ongoing insolvency and restructuring process. This affidavit provides new details on managing creditors, restructuring plans, and shifting blame for the hack.

Zettai is seeking a moratorium to halt creditor actions during its rehabilitation, though this request is facing opposition.

Binance Under Fire: Shetty’s Allegations

A major part of the affidavit is Shetty’s renewed accusations against Binance. In August, Shetty claimed that Binance had significant control over WazirX’s funds, which hindered Zettai’s ability to refund clients affected by the hack. Binance quickly dismissed these allegations. On September 17, 2024, Binance issued a response stating that Shetty had misrepresented the cooperation between WazirX and Binance.

Binance has repeatedly affirmed that it never owned or controlled WazirX. In its blog post, Binance stated that Shetty and the WazirX team have misled customers and the market about the relationship between WazirX and Binance, asserting that Binance had no involvement with WazirX before, during, or after the July 2024 attack.

“It is further clarified that the WazirX team and Nischal Shetty have continued to mislead WazirX customers and the market on the relationship between WazirX and Binance,”

Zettai’s Search for “White Knight” Investors

Alongside addressing the Binance controversy, Shetty’s affidavit details Zettai’s efforts to attract potential investors. The company has been in talks with major cryptocurrency exchanges and has received three potential bailout offers.

These updates were shared in town hall meetings with creditors, which included Q&A sessions to address ongoing issues.

Uncertain Future for WazirX

While the future of WazirX remains unclear, Shetty’s affidavit gives a detailed account of Zettai’s restructuring efforts and attempts to compensate affected users. However, Binance’s firm denials have raised doubts about the accuracy of Shetty’s claims, leaving the credibility of WazirX’s statements and the trust of its subscribers and creditors in question.

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Is Binance truly innocent in the WazirX hack? Let us know your take!