Indian cryptocurrency exchange WazirX has become hot again after Binance, the world’s largest cryptocurrency exchange, claimed that it “does not own any shares in Zanmai Labs,” the entity that operates WazirX.
Binance issued the statement hours after the execution department announced on Friday that it had done so Frozen bank balances of Rs 64.67 crore belonging to WazirXAdding that the headquarters of the company’s director, Zanmai Labs, was searched on Wednesday. The ED said it found evidence against the company while investigating non-bank financial firms (NBFC) and its fintech partners who indulged in predatory lending practices.
According to ED, Chinese loan lenders that were shut down in India have transferred their funds through cryptocurrency exchanges, and the maximum amount of funds has been transferred to the WazirX exchange.
Earlier, its managing director, Mr. Nischal Shetty, claimed that WazirX is an Indian exchange that controls all crypto-to-crypto and INR-to-crypto transactions and only has an IP and a preferential agreement with Binance. But now, Zanmai claims that they are only involved in INR-to transactions. -crypto and that all other transactions are conducted by Binance on WazirX.The ED statement said that they provide contradictory and ambiguous answers to avoid oversight by Indian regulators.
In a tweet published today, WazirX co-founder Shetty said, “WazirX has been acquired by Binance, Zanmai Labs is an Indian entity owned by me and my co-founders, Zanmai Labs has a license from[o]m Binance to operate INR-crypto pairs At WazirX, Binance operates crypto-to-crypto pairs, and handles cryptocurrency withdrawals. “
However, that did not sit well with Binance CEO Changpeng Zhao, who was quick to respond that “Binance has never – at any time – owned any shares in Zanmai Labs, the entity that operates WazirX.” Notably, on November 21, 2019, Binance published a blog post stating that it had “acquired” WazirX. However, “this deal was never completed,” according to a tweet from Zhao.
According to Zhao, “Binance offers wallet services to WazirX only as a technology solution. There is also integration using off-chain transactions, to save on network fees. WazirX is responsible for all other aspects of the WazirX exchange, including user registration, KYC, trading and initiating withdrawals.” “
The feud between Shetty and Zhao on Twitter has baffled investors and crypto enthusiasts.
Shetty also said that Binance even owns the WazirX domain name, has access to AWS servers, all crypto assets and all crypto earnings,” asserting that Binance is the legitimate owner of the exchange.
In response to Shetty’s tweet, Zhao said, “WazirX’s domain has been transferred to our control. We’ve gained shared access to an AWS account. We can close WazirX. But we can’t because it hurts users. Deal hasn’t been closed. No sharing.” [trans]vers. “
However, Shetty was quick to point out that accepting “we can close WazirX” proves Binance’s control. He said that Binance has root access to AWS. “Anyone with root access controls AWS,” adding that “the only control right now is Zanmai, so why not take it?”