As a seasoned crypto investor with years of experience navigating the volatile and often confusing world of digital assets, I find myself deeply concerned about the ongoing saga between Binance and WazirX. The $235 million heist is already a significant blow to the trust and confidence of the crypto community, and now we’re faced with this legal dispute that seems to be only adding fuel to the fire.
In simpler terms, the international cryptocurrency exchange Binance has refuted allegations made by the hacked trading platform WazirX, stating that they have no association with the Indian exchange. Binance is now urging WazirX’s team to take responsibility following the $235 million crypto theft incident.
After WazirX’s team proposed, it seems users may need to be patient until the disagreement between the hacked exchange’s main corporation and the leading cryptocurrency exchange is resolved, before clarification can be provided.
WazirX Claims Zettai’s Dispute Could Affect Users
On Tuesday, Binance issued a statement clarifying that some statements made by Zettai, its parent company based in Singapore, were incorrect and misleading about the global cryptocurrency exchange. Since January 2023, WazirX’s parent company has been embroiled in a legal disagreement with the world’s largest trading volume crypto exchange.
Earlier, the compromised Indian platform declared they’d submitted an appeal to the High Court of Singapore seeking a pause (or moratorium) in order to help them reorganize their debts through a plan called a “scheme of arrangement.
The breached platform stated that if the proposed pause (moratorium) is accepted, it will offer a period of respite (a chance to catch one’s breath) for them to carry on with their restructuring strategy and ensure timely repayments for the users.
In case the application gets rejected, customers will need to hold on until the conflict between Binance and WazirX gets resolved, as this outcome could decide who is responsible for the users’ account balances.
Users may find themselves in a waiting game until the disagreement between Zettai and Binance is settled, since Zettai currently maintains the cryptocurrency tokens in protest (…). Only then will there be clarity for Platform users regarding who owns the Platform and its digital assets. If Binance is found to be the owner, it assumes responsibility for user account balances. On the other hand, if Zettai is proven as the owner, it takes on that liability instead.
Binance Rejects Liability
In the response given, it was stated that they are not accountable for managing users’ account balances. Furthermore, the blog post explained that Zettai’s obligations towards WazirX users have no connection to their ongoing disagreement with Binance.
Furthermore, statements attributed to Zettai’s primary owner, Nischal Shetty, in the two affidavits presented to back the moratorium request were marked as “incorrect” by the platform’s team.
In simpler terms, the international trading platform did not agree with Shetty’s remarks implying that her comments suggested the resolution of the dispute might decide who owns WazirX. This implication also hinted that if Zettai’s creditors were to take on Binance’s debt, the exchange would be obligated to compensate users affected by the situation.
In the current court case, it’s important to note that the question of WazirX’s ownership won’t be addressed, because neither Zettai nor its associates are trying to assert that Binance has ownership or control over the compromised platform.
Additionally, they clarified that Binance does not own, manage, or run WazirX. They emphasized that under no circumstances can Binance be held responsible for any claims made against WazirX.
Binance called on the teams of Zettai and WazirX to accept responsibility for the $235 million cryptocurrency theft, criticizing what they deemed as efforts to dodge accountability by issuing “highly misleading” and “outright false” explanations instead.
According to Bitcoinist‘s report, WazirX has been facing criticism since July. The users have been expressing their dissatisfaction over various actions taken following the hack, such as the absence of transparency and the choice to reinstate all accounts and cancel trades that took place after the event.
In essence, the worldwide network of communication strongly advised its users to remain well-informed and persistently demand clarity from these platforms.
Shifting blame instead of owning up to their responsibilities regarding user funds is a disheartening evasion strategy. It’s essential, however, not to let this tactic divert attention from the crucial matter at hand: the WazirX team must be made accountable for the lost funds under their care.
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2024-09-18 07:42