As a long-time crypto investor who has seen my fair share of market volatility and platform disputes, I can’t help but feel a sense of frustration reading about the ongoing saga between Binance and WazirX.
Binance denies the request by a WazirX user seeking reimbursement of approximately Rs 83 crore ($10 million), explaining that they do not own or operate the WazirX cryptocurrency exchange, and further clarifying that they do not hold any user’s digital funds on this platform.
Binance has made it clear that they are not assuming any accountability for the 2000 crore rupee hack at WazirX, as they believe that the security of the exchange lies solely with Zanmai and Zettai – the firms established by WazirX co-founder Nischal Shetty.
In a letter sent to the Singapore High Court, a user of WazirX requested a sum of approximately 830 million Indian rupees (Rs 83 crore) in compensation from Binance. This user argues that Binance, as a result of the hack, holds a duty of trust (fiduciary duty) towards him. According to Shetty, the cryptocurrency assets held by WazirX are under the management of Binance.
@binance responds to a #WazirX user demanding $10M in compensation
— Justice for WazirX Users (@IndiasCrypto) September 24, 2024
The WazirX platform is solely run by Zanmai, a company that is entirely owned by Zettai. It’s important to note that Binance has no role in managing or overseeing any part of WazirX’s business or operations, including user funds. Previously, Binance offered some wallet and related technology services to WazirX; however, these services were discontinued as of February 2023. This information was shared by Binance in a letter sent to WazirX users.
Binance indicated that it’s primarily the responsibility of Shetty to make sure that affected WazirX users receive compensation following the hack.
In simpler terms, Binance stated that the handling of user funds on the WazirX platform is overseen by Zanmai/Zettai, which is led by Nischal Shetty. If you have any concerns or seek resolution regarding funds held by WazirX, Binance advises looking exclusively to them for assistance.
As an analyst, I find myself reporting on a recent development: Nischal, representing Zettai, has petitioned the Singapore High Court for a six-month moratorium following the July 18 hack incident at WazirX exchange. The dispute between Zanmai and Binance over the ownership of the platform has escalated into a prolonged legal battle, with neither party showing interest in assuming control.
Shetty asserted that his Singapore-based firm, Zettai, was withholding users’ cryptocurrency as a form of protest, implying that it is Binance’s obligation to manage these funds. The agreement between WazirX and Binance, which dates back to 2019, has turned sour, leading both parties to engage in legal battles.
The continuous dispute between Zettai/Zanmai and Binance has left over 4.4 million users of WazirX uncertain about when they might regain access to their frozen assets, as the likelihood of this happening seems to be fading with each passing day.
Read More
Sorry. No data so far.
2024-09-25 13:40