As a dispute about India’s largest Exchange escalates, Binance lied about the ownership says WazirX. There is a chance to make a devastating effect on the Indian exchange and its users through the back and forth about the ownership of WazirX.
WazirX ownership was uncontested in November 2019 and Binance, the World’s largest crypto exchange published a blog spot about the Indian exchange purchase. Last summer WazirX landed itself with Indian Government. It has been alleged that WazirX helped 16 fintech companies launder money through its Mumbai office in early August.
Binance and WazirX
On August 5, Binance’s CEO tweeted that Binance does not own any equity in the entity operating WazirX in Zanmai Labs. As a result, WazirX and Binance had a back-and-forth about the ownership of the Indian exchange for months, during which Binance claimed that the transaction never took place, while WazirX officials claimed that it did – and claimed that they had proof, even though they did not share it.
Binance sent WazirX a letter on Jan. 26 – the evening of a national holiday in India – demanding the Indian exchange meet two demands by Feb. 3. WazirX must meet both requests by the end of the month to avoid Binance terminating its service agreement.
- Binance lied about the ownership said WazirX.
- WazirX must meet both requests by the end of the month.
- CZ tweeted that after the raid on WazirX, “If you have funds on WazirX, then transfer it to Binance”.
Zanmai, WazirX’s official name, responded to Binance’s demands in a letter obtained by CoinDesk, on Friday. According to Zanmai, the letter was “unethical” and threatened Zanmai into issuing false and misleading statements as “clarifications.”
Shetty refused to retract his prior statements that Binance had purchased the Indian exchange, in the letter to Binance’s legal team and CEO. Shetty also said that Binance had profited handsomely from its control of the exchange.
Towards that end, Shetty attached a partially redacted chain of emails beginning on July 19, 2021, between Brian Schroder, the CEO of Binance US, and Tushar Patel, the vice president of finance at WazirX.
Schoder wrote on July 28, 2021: “Thank you, Tushar, we will start the transfer process and keep you posted.”
According to sources from both exchanges, a similar outcome would likely crush WazirX, which stores 90% of user assets in wallets controlled by Binance, according to its proof-of-reserve report published on Jan. 11.
In August, CZ tweeted that after the raid on WazirX, “If you have funds on WazirX, then transfer it to Binance”. Despite the debates we are having, we can’t/won’t hurt users.”
