50 days after losing more than Rs 2000 crores in WazirX crypto exchange hack, the hapless victim users have now sought help from Indian Prime Minister Narendra Modi who is on a two day visit to Singapore, where the exchange is battling a legal case over moratorium. Over 40 lakh active users of WazirX in India are expected to take atleast 43% hit on their funds after the July 18 cyber hack.
Additionally, WazirX users are also demanding that Binance exchange issues a statement over ownership of WazirX in the wake of an ongoing legal dispute between Binance and Zettai Pte Ltd- the parent company of WazirX.
As PM Modi arrived in South-East Asian country Singapore for a two day visit on Wednesday, WazirX users took to Twitter to share their grievances and demand justice after they lost their funds post July 18 hack.
PM Modi is in Singapore to meet his counterpart PM Lawrence Wong on his invitation where key agenda issues of production of semiconductors and other electronic items will be discussed, as per media reports. Ever since the cyber hack of WazirX on July 18, Indian authorities have observed silence and not taken any action.
Why WazirX Users are Seeking Help from PM Modi who is in Singapore?
WazirX had over four million active users before the July 18 hack who are mostly based out of India. As per the legal documents of WazirX, the exchange has a provision of settling legal disputes by approaching the judiciary in Singapore through their parent company Zettai Pte Ltd. Additionally, WazirX co-founder Nischal Shetty is himself based out of Dubai and recently claimed, that he doesn’t know who is responsible for safeguarding user crypto funds on his exchange.
On September 3, WazirX through Zettai Pte Ltd filed a moratorium application in Singapore High Court, which will halt all legal actions against the exchange management and give them a breathing space of six months to come up with a restructuring plan for users. According to WazirX legal advisors, it is likely that users will suffer 43% loss of funds in the overall restructuring process and it has led to widespread anger among the users.
Sir talk about wazirx. Scam has been done in Singapore. Wazirx scam
In Singapore. They looted 2000 crore of Indians hardend money Modi sir please talk about wazirx.— venumadhav (@maddykovelamudi) September 4, 2024
WazirX Users also demand answers from Binance
Amid the ongoing uncertainty surrounding accountability for the WazirX hack, victims are now seeking clarification from Binance. WazirX CEO Nischal Shetty has repeatedly claimed that Binance recently acquired WazirX, intensifying demands for a clear explanation from Binance.
The account on X named ‘Justice for WazirX Users’ (@indiascrypto) highlighted that WazirX founders have repeatedly called out Binance 100 times in the previous week and argued that they are the true owners of WazirX.
“We deserve a new statement from Binance to clarify this matter”, the page asks Binance to come forward and provide a brief statement to clear fogg around WazirX ownership. It also shows skepticism, saying “If they continue to remain silent, it only adds credibility to WazirX’s claim,” claimed @indiascrypto on ‘X’.
Kashif Raza, a founder of Bitinning, has also slammed Binance for remaining silent on this matter even after WazirX dragged Binance to court in their affidavit filed in Singapore. “Binance is neither denying anything nor accepting anything”, he added.
WazirX has dragged @binance to court in their affidavit.
But Binance is neither denying anything nor accepting anything.
No one from INDIA is asking questions from Binance.
Why?
Is Binance > WazirX or CZ > Nischal?
Users should get clarity from Binance…they deserve it.
— Kashif Raza (@simplykashif) September 4, 2024
Twitter War Between CZ & Nischal Shetty
In 2022, Binance’s founder, Changpeng Zhao, posted a thread refuting that Binance holds any equity stake in Zanmai Labs, the company behind WazirX, which was founded by its original creators. He stated that the acquisition transactions were not completed.
Quick thread on Binance and WazirX, and some incorrect reporting.
Binance does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.
1/4
— CZ 🔶 BNB (@cz_binance) August 5, 2022
CZ is currently serving for month of sentence in jail at Lompoc II in the U.S.
In response, Nischal Shetty posted another thread on X, arguing that Binance had acquired WazirX. He claimed that Binance has significant control over WazirX’s services, including its domain name, AWS servers, all crypto assets, and that they take all the profits generated from the platform.
1/ FACTS about WazirX & Binance:
WazirX was acquired by Binance
Zanmai Labs is an India entity owned by me & my co-founders
Zanmai Labs has license frm Binance to operate INR-Crypto pairs in WazirX
Binance operates crypto to crypto pairs, processes crypto withdrawal…
— Nischal (Shardeum) 🔼 (@NischalShetty) August 5, 2022
Conclusion
With such ambiguity in place, the victim users of WazirX are now forced to look for alternate options to get their voices heard. The prospect of losing their minimum 43% funds is giving sleepless nights to the users even as the Singapore High Court addresses the moratorium application of WazirX.
Also Read: Will the real WazirX owner please stand up?