The Binance vs WazirX dispute is intensifying as pressure on the WazirX exchange increases amid its controversial restructuring plan.
As we know, one month ago, the WazirX crypto exchange faced a cyber attack, and the attacker successfully drained more than $230 million worth of cryptocurrencies from WazirX’s cold wallet. Currently, WazirX is trying to restructure the platform, instead of adopting a bankruptcy route, but the Indian crypto community is not ready to support this restructuring plan.
We also reported that WazirX customers are expecting a fresh statement from Binance leadership regarding the “WazirX” platform ownership conflict.
As we know, the conflict between WazirX and Binance has been ongoing since 2022. Binance co-founder Changpeng Zhao (CZ) claims that WazirX never completed their deal. On the other hand, WazirX CEO Nischal Shetty argues that Binance controls all WazirX operations, except for user KYC verification and user data management.
An Indian crypto influencer and legal expert studied the affidavit filed by WazirX representatives against Binance in court.
This crypto law expert noted three key points that Binance should deny if they are not true:
• All users are non-contingent creditors, not contingent creditors.
• WazirX took control of funds and exchange operations back from Binance “Under Protest.
• Binance is not returning $17 million.
It is worth it to note in the first point that If WazirX customers are legally recognized as non-contingent creditors, this would give them a stronger claim to recover their funds in the event of liquidation. It means their claim for the return of their funds is direct and certain, and they would be among the first to get compensated from WazirX’s remaining assets after the WazirX liquidation process.
On the other hand, if WazirX customers were considered contingent creditors, their right to claim their funds could be delayed or reduced, as their claims would depend on certain future conditions or outcomes. This would potentially place them in a weaker position during the liquidation process.
For the past week, the majority of WazirX customers and Indian crypto leaders have been asking Binance leadership on the X platform to issue a fresh statement regarding this ownership dispute. In reality, some WazirX customers are hoping for statements from the Binance team and for the WazirX platform to come live again.
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