Changpeng Zhao (CZ), the co-founder and former CEO of Binance, recently addressed concerns related to the crypto exchange WazirX. CZ, who recently served a four-month prison sentence as part of a settlement with US authorities over charges against Binance, stated that he had already warned people about potential issues with WazirX.
In a tweet from a Crypto X user, CZ was reminded of a past tweet where he had cautioned individuals holding funds on the WazirX exchange. CZ responded by explaining that he was not aware of the recent incident involving WazirX as he was incarcerated at the time. Despite this, he reiterated that he had previously issued warnings regarding WazirX.
Following this interaction, Indian crypto influencer Aditya Singh called on CZ to address the situation involving $17 million worth of cryptocurrencies seized from WazirX by Binance. Despite the call for clarification, CZ has not responded, leading to speculation about his silence on the matter.
Several Indian crypto influencers have urged CZ to intervene in the situation, highlighting Binance’s potential role in resolving the issue and revitalizing the WazirX platform.
The relationship between Binance and WazirX has been tumultuous, with Binance initially announcing the acquisition of WazirX in late 2020. However, CZ later clarified that the acquisition was never completed due to a lack of cooperation from WazirX leadership. In 2022, all services and relationships between the two exchanges were terminated.
In July 2024, WazirX experienced a hacking incident resulting in the loss of nearly 50% of customer funds. The hack targeted the exchange’s cold wallet, leading to suspicions of premeditation. Despite allegations of foul play, no concrete evidence has been presented to support these claims.
In response to the hacking incident, WazirX suspended its services for the past four months, with leadership focusing on a restructuring plan. However, customers remain in the dark about the progress and future of the exchange.
As the situation unfolds, the crypto community eagerly awaits CZ’s potential involvement in resolving the WazirX crisis and restoring trust in the platform.