The WazirX Comeback and Ownership Controversy

 

WazirX, a prominent Indian cryptocurrency trading exchange, has made headlines recently with its return to active operation after navigating through a complex restructuring process approved by a Singapore court. This marks a significant comeback for the exchange, considering the severe challenges it faced, including a staggering exploit that led to losses amounting to $234.9 million in July 2024. This setback occurred just six years after its establishment in March 2018.

 

However, amidst this resurgence, the Indian crypto community remains perplexed regarding a critical issue: the true ownership of WazirX. Initially, on November 21, 2019, WazirX announced that it had been acquired by Binance, the world's largest cryptocurrency exchange. This move was seen as a significant leap for WazirX, aligning it with a giant in the crypto world. Despite this declaration, Binance later refuted claims of holding any ownership stake in WazirX, which subsequently led to a protracted ownership dispute. WazirX maintains that it possesses all necessary legal documentation proving the acquisition, thus fueling the ongoing debate about its ownership status.

 

Nischal Shetty's Perspective on the Ownership Dispute

 

In a detailed interview hosted by TheStreet Roundtable, WazirX's founder and CEO, Nischal Shetty, provided deeper insights into the enduring ownership dispute with Binance. According to Shetty, this complex issue has escalated into legal proceedings. "End of the day, I think it's now gone into a stage of litigation," Shetty articulated, highlighting the gravity of the situation. The exchange had ostensibly been sold during the late 2019 to early 2020 timeframe, which was publicly announced at that point.

 

Despite this, conflicting claims between WazirX and Binance have caused confusion, with both parties asserting ownership over the platform. Shetty described the current situation as a "he said, she said" scenario, emphasizing that the litigation's outcome will be pivotal. This legal process, stepping into new and uncertain territory, holds significant implications for both entities involved.

 

The Future and Rebuilding of WazirX

 

During the interview, when questioned about whether Binance reached out to WazirX following the July 2024 hacking incident, Shetty refrained from commenting, citing the ongoing legal proceedings as a constraint. Reflecting on the lengthy ownership dispute, Shetty mentioned that his primary focus over the last 15 months had been on resuming operations of WazirX. Given the operational disruptions experienced, reviving the exchange became a top priority.

 

Now that WazirX is back in business, Shetty stressed that addressing unresolved issues, including the ownership dispute, is part of the broader rebuilding phase. "I think prioritizing as an entrepreneur is very important," Shetty remarked. The restart of operations marks the beginning of a new rebuilding era for WazirX, where these challenging questions and issues will be tackled with renewed vigor. The journey ahead for WazirX involves managing and resolving these complexities while navigating the evolving landscape of cryptocurrency trading.