More than 50 days after losing over ₹2,000 crores in the WazirX cryptocurrency exchange hack, victims are now urging Indian Prime Minister Narendra Modi, currently on a diplomatic visit to Singapore, for assistance. The users, who have lost a significant portion of their holdings, are seeking answers from both the Indian government and Binance, as legal disputes swirl around WazirX’s ownership.
The hack, which took place on July 18, affected more than 4 million active WazirX users in India, with estimates suggesting they could lose as much as 43% of their holdings. Victims are now demanding clarity and justice as they grapple with the fallout.
Call for Binance Accountability
In addition to seeking Modi’s intervention, WazirX users are demanding a formal statement from Binance, which is embroiled in an ongoing legal battle with WazirX’s parent company, Zettai Pte Ltd. The ownership of WazirX remains under dispute, further complicating matters for affected users.
Amidst the controversy, WazirX co-founder Nischal Shetty, who resides in Dubai, has distanced himself from responsibility, claiming uncertainty about who is accountable for safeguarding the exchange’s user funds.
WazirX’s Legal Struggles in Singapore
As Prime Minister Modi arrived in Singapore, where WazirX’s parent company is headquartered, Indian users turned to social media to voice their frustrations. The legal battle in Singapore has taken center stage, with Zettai Pte Ltd filing for a moratorium in the Singapore High Court on September 3. If accepted, this moratorium would grant WazirX a six-month reprieve from legal actions, giving the company time to propose a restructuring plan for users. However, early indications suggest that users could face a 43% loss on their investments as part of this restructuring.
This prospect has sparked outrage among the community, with users expressing fears over the potential loss of funds and the lack of concrete action from Indian authorities since the cyberattack.
Twitter Speaks: Users Demand Action from Binance
As uncertainty grows, WazirX victims are also turning their attention to Binance, with demands for the global cryptocurrency exchange to clarify its role in the matter. Nischal Shetty has repeatedly claimed that Binance acquired WazirX, fueling calls for Binance to release an official statement.
A social media account named ‘Justice for WazirX Users’ (@indiascrypto) has been vocal in these demands, highlighting that WazirX has mentioned Binance’s name more than 100 times in the past week alone. The account claims that Binance’s continued silence only strengthens the argument that they should be held accountable.
“We deserve a clear statement from Binance to resolve this confusion,” the account tweeted, warning that Binance’s silence might imply tacit acknowledgment of WazirX’s claims.
The Binance-WazirX Feud
This isn’t the first time Binance and WazirX have clashed. In 2022, Binance CEO Changpeng Zhao (CZ) publicly denied holding any equity in Zanmai Labs, the company behind WazirX, after originally being touted as a key player in WazirX’s operations. Zhao clarified on social media that Binance had never completed the acquisition of WazirX, countering claims made by Shetty and his team.
However, Shetty responded by doubling down on his assertions, arguing that Binance controls key aspects of WazirX, from its domain name to its AWS servers and the custody of crypto assets. Shetty maintained that Binance profits from the platform’s operations, raising further questions about the true nature of the relationship between the two companies.
The Road Ahead for WazirX Users
With the legal situation still in flux, WazirX users are left in a state of uncertainty. As the Singapore High Court deliberates on the moratorium, users fear the potential 43% loss of their funds, a reality that has led many to seek alternative channels for justice. For now, their hopes rest on the actions of both Binance and the Indian government to address the situation and offer some semblance of resolution.
The road to justice remains uncertain, but the growing frustration among users continues to fuel their calls for action, both online and in the courts.
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