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What’s the story with WazirX? Does Binance own it?

According to a statement from WazirX, deposits and withdrawals on the exchange are currently functioning as usual. 

The Enforcement Directorate (ED) has charged WazirX with aiding 16 Indian fintech companies that are already under investigation for laundering criminal proceeds by sending the money to unidentified international wallets.

Crypto specialists in the nation voiced concern when the Enforcement Directorate seized the bank accounts of WazirX, a cryptocurrency exchange, totaling 64.67 crore rupees, and the founder of Binance denied owning Zanmai Labs, the company running WazirX.

ED has charged WazirX with aiding 16 Indian fintech companies that are already under investigation for laundering criminal proceeds by sending the money to unidentified third parties.

On the other hand, a full-fledged Twitter battle between Binance CEO Changpeng Zhao and WazirX founder Nischal Shetty has erupted.

Shetty has contradicted Zhao’s claim that the acquisition of WazirX was never finalized, which Zhao made in a tweet on Friday.

Shetty claims that WazirX was purchased by Binance and that he and his co-founders own Zanmai Labs, a company based in India. “Zanmai Labs has a Binance license that allows it to run INR-Crypto pairings in WazirX.

Binance manages crypto withdrawals and operates crypto to crypto pairs, according to a tweet by Shetty.

What's the story with WazirX Does Binance own it
Source:timesofindia

In the meanwhile, Zhao advised users to transfer any cash they had on WazirX to Binance in a tweet on Saturday. We could technically disable WazirX wallets, but we can’t or won’t do so. And despite the debates we are having, we cannot and will not harm consumers “The Founder of Binance tweeted.

Naimish Sanghvi, CEO of Coin Crunch India and a cryptocurrency entrepreneur, said: “It’s a very complex situation in that Binance has access to WazirX but has no equity in Zanmai Labs, the company that runs WazirX’s crypto-INR exchange. Now, CZ (Zhao) vs Nischal’s term is in play.”

The creator of cryptocurrency education business Bitinning, Kashif Raza, also questioned the timing of Binance’s announcement that it has no equity in Zanmai Labs, the company running WazirX.

“Why not sooner or later? Why now instead of afterward? Why would you make this announcement while an inquiry is ongoing? Nischal has since stated that only Binance receives revenues and profits.

The industry is going through one of its most challenging periods right now, and this particular event won’t help it develop overall “explained Raza. Some experts have grown concerned in the midst of the turmoil.

“How can a user have faith in an exchange in the midst of all this confusion when the creator and the person who controls it are engaged in a public Twitter argument? “On the condition of anonymity, a crypto professional said.

The exchange’s deposits and withdrawals are currently operating as usual, according to a statement from WazirX.

“We have been working closely with the Enforcement Directorate (ED) for a number of days, and we have answered all of their questions completely and openly. The claims made in the ED news release are not ones we support. We are assessing our next course of action,” the statement continued.

Shetty reassured users on Saturday that deposits made in rupees and cryptocurrencies on WazirX were secure.

WazirX had previously argued that because the tokens are kept in a separate custodial wallet, the investors will not lose control of them. “We are a platform for transaction execution; we have no control over the assets of our clients.

Investors, therefore, have exclusive rights, title, and ownership of their cryptocurrency, subject to clause 9.2 of the Terms of Service of our Platform “.

Regarding the ED freeze’s impact on users’ funds, Sanghvi stated, “It’s only 64 crore, which seems too little to be users’ money. At least 200–250 crores of Indian rupees may have been deposited on WazirX.”

Some experts, though, remain suspicious.

“Customers are still able to withdraw money, but I’m not sure how long that will last. According to media reports, not all of the accounts appear to have been frozen by ED. Users might well be impacted if a lot of withdrawals start to occur, according to Ajeet Khurana, founder of Web 3.0 company Reflexical and a prominent cryptocurrency advisor.

Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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