Binance denies liability for WazirX’s recent cyber attack, citing lack of ownership and distancing itself from the compromised platform.

Binance, the global cryptocurrency leader, has clarified its lack of responsibility regarding the recent cyber attack on the Indian crypto exchange WazirX. In a blog post, Binance asserted that it does not own or operate WazirX, despite previous claims of an acquisition. The attack, which resulted in the theft of over $230 million, led WazirX to blame its wallet service provider, Liminal Custody. Binance emphasized that it has never controlled WazirX or the funds of its users, stating that any financial arrangements after user funds were transferred were made without its knowledge. This declaration aims to clear up confusion and legal liabilities concerning the attack on WazirX.

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Binance Clears Its Name Amid WazirX Cyberattack Fallout

In a recent turn of events, Binance, one of the world’s leading cryptocurrency exchanges, has firmly distanced itself from any liabilities related to a recent cyberattack on the troubled crypto exchange WazirX. This comes on the heels of accusations from Liminal Custody, a wallet service provider, which blamed WazirX for the breach.

In an official blog post, Binance clarified that it does not own or operate WazirX, stating there is no legal reason for it to be responsible for the claims associated with the compromised platform. Binance emphasized that it has never controlled or operated WazirX either before, during, or after the hacking incident.

The controversy traces back to July when WazirX suffered a major security breach resulting in the theft of over $230 million, nearly half of its total digital assets. Although Binance had previously announced a supposed acquisition of WazirX in 2019, it later clarified that this acquisition was limited to certain assets and intellectual property.

WazirX’s user agreement suggested that Binance provides services on its platform, including peer-to-peer transactions. However, Binance contested this interpretation, labeling it incorrect and misleading. It insisted that its name should be removed from WazirX’s user agreement, but claims by WazirX founders were ignored.

Nischal Shetty, the CEO of WazirX, has faced scrutiny as WazirX points fingers at Liminal Custody following the cyberattack. Liminal, however, affirmed that its systems were secure and not compromised during the incident.

As things stand, Binance has made it clear it holds no responsibility for WazirX’s users’ funds, which were transferred to Liminal without Binance’s consultation. As the fallout from this cyberattack continues, Binance’s distancing maneuvers highlight the complex web of relationships within the cryptocurrency ecosystem.

This development raises important questions about accountability in the crypto space, particularly as exchanges grapple with security challenges. Keep an eye on this situation as it unfolds.

Tags: Binance, WazirX, Cyberattack, Cryptocurrency, Liminal Custody, Crypto Security, Nischal Shetty, Digital Assets

What happened with WazirX recently?
WazirX had a cyber attack where hackers stole some money. This caused concerns about the safety of users’ funds.

Is Binance responsible for the WazirX cyber attack?
No, Binance said they are not responsible for the attack and do not have any liability for the losses.

What does it mean when Binance detaches itself from WazirX?
It means Binance is stating that they are not connected to WazirX’s issues, and they are not liable for any problems that occurred because of the attack.

Will WazirX users get their money back?
It is unclear if users will be compensated for their losses. Users need to check WazirX’s announcements for updates on refunds.

What should WazirX users do now?
Users should stay informed about any updates from WazirX, follow their instructions, and consider securing their accounts with better safety measures.