Loading
Published September 30, 20242 min read

WazirX's $235M Breach Raises Questions on Crypto Security and Accountability

coinmooner logo
CoinMooner
Publisher
artwork image for: Security Breach: WazirX on the Brink of Collapse After $235 Million Crypto Heist

In today's world, where technology and financial innovations are rapidly developing, various cases of fraud and hacking often occur in the Web3 industry. Despite many efforts to prevent such incidents with enhanced security systems and constant monitoring, attackers sometimes still manage to carry out their attacks successfully. In such cases, security protocols are insufficiently effective, leading to the loss of significant amounts of digital assets. It is common for companies to start blaming each other, avoiding responsibility for what happened, which only worsens the situation for those affected.

In today's news article, Coinmooner aims to shed light on a similar situation. In July of this year, the WazirX platform reported a significant hacking attack that resulted in the theft of $235 million worth of digital assets. A key player in this story is the company Zanmai, which accuses Binance of the incident. Binance, in turn, refuses to take responsibility for the theft and the recovery of the stolen funds.

The company officially published a report about the WazirX hack and the loss of $235 million in digital assets. However, the situation escalated further on September 2, when Zanmai Pvt, the officially registered owner of WazirX, held a press briefing. During the briefing, company representatives stated that the WazirX platform is on the verge of financial collapse and its users have little hope of recovering their stolen funds. This incident raises questions about the security of cryptocurrency platforms and their commitment to protecting their customers' interests.

image

Crypto Controversy: Binance and Zanmai Battle Over $235M Loss and User Compensation

Coinmooner decided to take a closer look into the details of this incident and found that one of the key reasons preventing compensation to affected users is Binance's position. Zanmai representatives claim that Binance refuses to acknowledge actual ownership and control over WazirX’s operations. According to Zanmai, Binance should assume secondary responsibility towards the platform's users because, as they argue, Binance plays a crucial role in managing the exchange. Therefore, in Zanmai’s view, Binance must compensate for the losses suffered by WazirX customers due to the hacking attack.

However, Binance disagrees with this stance. The company has publicly called on WazirX and its owner, Zanmai, to take full responsibility for losing customer funds and handle compensation independently. Binance expressed frustration with Zanmai’s attempts to shift the blame onto them, stating that these actions are a tactic to divert attention from WazirX’s internal problems. Binance also emphasized that it has no involvement in managing WazirX and bears no responsibility for the platform's operations or the consequences of the hack. According to Binance representatives, they are not obligated to participate in reimbursing affected users.

Additionally, the analytics platform Cyvers previously reported that the hacker allegedly responsible for the breach of the Indian cryptocurrency exchange WazirX had started actively laundering the stolen funds through the cryptocurrency mixer Tornado Cash. This complicates the asset recovery process and further muddles the situation. CoinMooner will closely monitor the developments in this case and aim to keep our readers informed of any new details. At the same time, we want to remind everyone that in the Web3 industry, it is crucial to use the most advanced security technologies to protect your finances and digital assets from potential threats.

Share This Article
Contents
Keep learning

Subscribe to our newsletter

Get the relevant crypto news and promising coins straight to your inbox