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Binance founder Changpeng Zhao has denied that the exchange owns shares in Zanmai Labs, which operates Indian cryptocurrency exchange WazirX.
A quick thread on Binance and WazirX, and some false reports.
Binance does not own any stake in Zanmai Labs, the entity that operates WazirX and was founded by the original founders.
1/4
CZ Binance (@cz_binance) August 5, 2022
The revelation follows the Indian law enforcement agency’s decision to freeze accounts belonging to WazirX on suspicion of money laundering.
August 5th twitter thread, Zhao said Binance has not completed the acquisition of WazirX, as claimed in a blog post published on November 21, 2019. CZ said:
Binance has never owned shares in Zanmai Labs, the entity that operates WazirX, at any time.
He went on to say that Binance provides wallet services for WazirX and only offers integrations that use off-chain transactions to save network fees. CZ said:
WazirX is responsible for all other aspects of the WazirX exchange, including user sign-up, KYC, trading and withdrawal initiation.
Zhao also said recent allegations regarding the operation of WazirX are concerning and do not align with Binance’s values as the company works with law enforcement agencies around the world.
CZ also said that WazirX is uncooperative with Binance. He said that Binance requested in February this year to transfer the source code of the WazirX system, but was denied.
FACT: In February of this year I requested a transfer of the source code, deployment and operation of the WazirX system. This he was rejected by WazirX. Binance does not control its own system.
WazirX seems uncooperative to us and uncooperative to ED.
CZ Binance (@cz_binance) August 6, 2022
Mr. Zhao told WazirX users to let WazirX users fund their own exchanges because “on a technical level we can disable the WazirX wallet, but we can’t/won’t do that” so as not to hurt the users. He added that he advised them to transfer.
If you have funds on WazirX, you need to transfer them to Binance. Simple like that.
You can disable the WazirX wallet on a technical level, but you can’t/can’t do that. And as many arguments as we endure, we can’t/will not hurt our users.
CZ Binance (@cz_binance) August 5, 2022
Sad that these have to be discussed on Twitter:
Binance provides wallet services for WazirX.
The WazirX domain will be transferred under our control.
You have been given shared access to your AWS account.You can shutdown WazirX. But it can’t.. 1/2 https://t.co/YoMIgAHC5v
CZ Binance (@cz_binance) August 5, 2022
At the time of press, the official website of Binance still has publication of its WazirX acquisition.
WazirX founder Nischal Shetty claims that Binance actually bought the exchange.
1/ Facts about WazirX and Binance:
Binance Acquires WazirX
Zanmai Labs is an Indian corporation owned by me and my co-founders.
Zanmai Labs Gets License From Binance To Operate INR-Crypto Pairs On WazirX
Binance operates cryptocurrency pairs and processes cryptocurrency withdrawals
Nischal (Shardeum) (@NischalShetty) August 5, 2022
“We were able to shut down WazirX” Prove you’re in control
AWS shared access Allows ROOT access to AWS! Root access control anyone with AWS
“WazirX domain has been transferred under our control” Thank you for confirming
The current control is Zammai, why not take 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 on WazirX, but Binance operates cryptocurrency pairs and processes cryptocurrency 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 crypto profits.
WazirX Terms of Service Indicated Binance providing crypto-related services to an India-based exchange.
Meanwhile, Shetty Said All WazirX cryptocurrencies and Indian Rupees are safe and the exchange is KYC and AML compliant.
All User Assets WazirX crypto and INR are safe
WazirX has always ensured KYC is enforced and AML policies are in place
We only accept bank transfers, so everything is trackable
Transfers from WazirX to Binance are always recorded in our database and only between the user’s own accounts
Nischal (Shardeum) (@NischalShetty) August 6, 2022
The conflicting claims sparked controversy within the Indian cryptocurrency community as many questioned why Zhao denied ownership of WazirX.
CryptoWhale claimed there are 93 legal documents confirming Binance’s ownership of WazirX, including the user agreement last reviewed on July 1, 2022.
Shortly after news broke that India’s WazirX exchange was being investigated by authorities for money laundering, Binance’s CZ CEO insisted they never acquired the company.
Still, 93 legal documents confirm Binance owns them, which CZ confirmed in a tweet last year. pic.twitter.com/Gub4urthgV
CryptoWhale (@CryptoWhale) August 5, 2022
