Binance moves to dissociate self from WazirX over recent allegations Binance moves to dissociate self from WazirX over recent allegations
CZ and Nischal Shetty have been involved in an exchange of words over Binance acquisition of WazirX.
2 min read
Updated: Aug. 6, 2022 at 1:49 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance founder Changpeng Zhao has denied that the exchange owns any equity in Zanmai Labs, the company behind the Indian crypto exchange WazirX.
Quick thread on Binance and WazirX, and some incorrect reporting.
Binance does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.
1/4
— CZ 🔶 Binance (@cz_binance) August 5, 2022
The revelation followed India’s Enforcement Directorate’s decision to freeze an account belonging to WazirX over allegations of money laundering.
In the Aug. 5 Twitter thread, Zhao said that Binance did not complete the acquisition of WazirX as claimed by a blog post published on November 21, 2019. CZ said:
“Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX.”
He continued that Binance only provides wallet services to WazirX and an integration that uses off-chain transactions to save on network fees. CZ stated that:
“WazirX is responsible (for) all other aspects of the WazirX exchange, including user sign-up, KYC, trading and initiating withdrawals.”
Zhao also mentioned that the recent allegations about the operations of WazirX are concerning and do not align with the values of Binance as it collaborates with law enforcement globally.
CZ also stated that WazirX has been uncooperative with Binance. He said Binance had requested the transfer of the WazirX system source code as recently as this February but was rejected.
Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.
WazirX has been uncooperative with us, and looks like uncooperative with ED as well.
— CZ 🔶 Binance (@cz_binance) August 6, 2022
Zhao advised WazirX users to transfer their funds to his exchange as he “could disable WazirX wallets on a tech level, but we can’t/won’t do that” to not hurt the users, he added.
If you have funds on WazirX, you should transfer it to Binance. Simple as that.
We could disable WazirX wallets on a tech level, but we can't/won't do that. And as much debates as we are enduring, we can't/won't hurt users. 🙏
— CZ 🔶 Binance (@cz_binance) August 5, 2022
Sad that these have to be debated on Twitter:
Binance provides wallet services for WazirX.
WazirX domain is transferred to our control.
We were given a shared access to an AWS account.We could shutdown WazirX. But we can't, because.. 1/2 https://t.co/YoMIgAHC5v
— CZ 🔶 Binance (@cz_binance) August 5, 2022
As of press time, Binance’s official website still showed the announcement of its WazirX acquisition.
WazirX founder insists Binance bought the exchange
WazirX’s founder Nischal Shetty has insisted that Binance indeed bought the exchange.
1/ FACTS about WazirX & Binance:
WazirX was acquired by Binance
Zanmai Labs is an India entity owned by me & my co-founders
Zanmai Labs has license frm Binance to operate INR-Crypto pairs in WazirX
Binance operates crypto to crypto pairs, processes crypto withdrawal…
— Nischal (Shardeum) ⚡️ (@NischalShetty) August 5, 2022
“We could shut down WazirX” – Proves you have control
“Shared access of AWS” – You have ROOT access of AWS! Anyone with root access controls AWS
“WazirX domain transferred to our control” – Good to see you confirm that
Only control now is Zanmai, why are you not taking it? https://t.co/5E4zzWiOI7
— Nischal (Shardeum) ⚡️ (@NischalShetty) August 6, 2022
Shetty added that Zanmai Labs is an entity owned by him and other co-founders.
According to him:
“Zanmai Labs has a license from Binance to operate INR-Crypto pairs in WazirX, but Binance operates crypto to crypto pairs, processes crypto withdrawals.”
He added that Zanmai and WazirX are two different entities, and Binance owns the WazirX domain name, has access to all crypto assets on the exchange, and gets all the crypto profits.
WazirX’s user agreement showed that Binance offered crypto-related services for the Indian-based exchange.
Meanwhile, Shetty said that all crypto and Indian rupees on WazirX are safe, and the exchange complies with KYC and AML standards.
All user assets – Crypto & INR on WazirX are safe
WazirX has always ensured KYC is conducted, AML policies are in place
We only allow bank transfers so everything is traceable
WazirX to Binance transfer is recorded in our database ALWAYS and it’s ONLY between users own account
— Nischal (Shardeum) ⚡️ (@NischalShetty) August 6, 2022
Indian crypto community in limbo
The conflicting assertions have sparked debate within the Indian crypto community as many wonders why Zhao denies WazirX ownership
CryptoWhale alleged that there are 93 legal documents confirming Binance’s ownership of WazirX, including a user agreement last reviewed on July 1, 2022.
Immediately after the news broke that India’s WazirX exchange is being probed by authorities for money laundering, Binance CEO CZ claims they never acquired the firm.
Yet 93 legal documents confirm Binance owns them, and CZ even admitted it in tweets last year. pic.twitter.com/Gub4urthgV
— CryptoWhale (@CryptoWhale) August 5, 2022
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
WazirX
WazirX is an India-based cryptocurrency exchange with an advanced trading interface and features to Buy, Sell & Trade cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Nischal Shetty is the founder and CEO of India’s leading cryptocurrency exchange WazirX.