WazirX vs Binance Ownership Fight Escalates to Litigation After $230M Hack
WazirX founder and CEO Nischal Shetty confirmed the long-running ownership dispute with Binance has escalated into formal litigation. The disagreement dates to Binance’s 2019–2020 acquisition announcement: WazirX says it holds legal documents proving Binance’s stake, while Binance publicly denies ownership. The case follows a July 2024 hack in which WazirX lost roughly $230 million from an external fund-management site tied to its multi-signature setup. Shetty said the hack targeted an external service and declined to comment on any post-hack contact from Binance because the matter is sub judice. Separately, WazirX used Liminal’s multisignature custody software; Liminal denies being breached and says about $175 million remained under its control 75 days after the theft. WazirX has pledged to migrate assets to new multi-signature wallets and publish the wallet list for transparency. For traders: litigation increases uncertainty over platform control, asset recovery and operational clarity for WazirX’s user base. Monitor court filings, official wallet migrations, on-chain movements, regulatory actions in India and updates on asset recoveries and withdrawal restrictions. Keywords: WazirX, Binance, litigation, exchange hack, multisig custody, wallet migration, asset recovery.
Bearish
The litigation and unresolved custody dispute create heightened uncertainty for WazirX specifically. Uncertainty around ownership, control and asset recovery tends to reduce user trust and can trigger withdrawals or reduced trading volume on the affected platform. The $230M hack and contested responsibility between WazirX and Liminal add operational risk and may slow or complicate on-chain asset movements and recoveries. Short-term: likely negative price pressure on any WazirX-linked token or on-market sentiment toward the exchange (reduced deposits, withdrawals, and trading volumes). Long-term: prolonged legal disputes and unclear custody responsibility could permanently damage user confidence and market access, delaying regulatory clarity in India and reducing institutional use of the platform. Traders should expect volatile on-chain flows around announced wallet migrations and court milestones; monitoring these events is essential for timing entries and exits.