The cryptocurrency space has witnessed a disagreement between the Co-Founder of WazirX, Nishcal Shetty, and Binance CEO Changpeng Zhao (CZ). The argument revolved around the ownership of India’s most prominent cryptocurrency exchange.
In the early hours of yesterday, the Enforcement Directorate of India seized the assets of WazirX over money laundering allegations. According to the Enforcement Directorate, WarizX assisted Instant Loan App firms in laundering fraud money. The ED alleged that the crypto exchange facilitated the purchase and transfer of cryptocurrency assets, which resulted in the seizure of about Rs. 64.67 Crore.
Further, Binance CEO Changpeng Zhao swiftly distances his firm from the India-based cryptocurrency exchange. Changpeng Zhao dislodged that WazirX doesn’t belong to Binance as popularly established by some media outlets. This position triggered the fury of the WazirX co-founder Nischal Shetty.
WazirX Co-Founder’s Position On The Issue
The Co-founder argued that WazirX had a connection with Binance after the firm acquired it about two years ago. In a thread, the Co-founder established that Zanmai Labs gave up its ownership of WazirX upon the completion of the takeover. He maintained that Zanmai Labs has a license from Binance to operate INR-Cryptocurrency pairs within WazirX. Nischal admitted that Zanmai Labs charges trading fees on INR-Cryptocurrency and INR deposits and withdrawal fees.
Additionally, the Co-founder revealed that Binance runs cryptocurrency to cryptocurrency pairs, and it processes their withdrawal as well. Thus, Binance charges all the fees for Cryptocurrency-Cryptocurrency trading and Cryptocurrency withdrawals. Nischal went on to reveal that Binance owns the WazirX domain name, the root access of its AWS servers. He divulged that Binance owns all the cryptocurrency assets and the cryptocurrency profits as well.
Binance CEO Reaction To The Claims
Meanwhile, Changpeng Zhao retained that Binance doesn’t own any equity in Zanmai Labs, emphasizing that WazirX is under the control of Zanmai Labs. He recalled how Binance publicized a post about the acquisition of WazirX. However, he illuminated that the process didn’t hit the completion stage. Also, the Binance CEO disclosed that as a tech solution, his firm only provides wallet services for WazirX.
So, the CEO argued that WazirX is in charge of all operations on its platform. This comprises user sign-up, KYC verification, trading, and withdrawal of funds. He hinted that Binance could withdraw its wallet services to WazirX, but the firm won’t do that. Likewise, the CEO advised users to transfer their funds and assets to WazirX to ensure the safety of their assets.
Furthermore, Changpeng Zhao expressed concern about the recent issues of WazirX with the ED. He stated that Binance is well known for its obedience to regulatory stipulations worldwide. Consequently, the CEO concluded that, if possible, Binance would be willing to collaborate with the ED.
Prominent cryptocurrency coach Sumit Kapoor expressed his disappointment in Binance over its role in the issues. He opined that Binance should have publicized the deal breakdown when it wasn’t completed.
Lastly, despite the argument and the controversies, the cryptocurrency exchange in question, WazirX, has addressed the situation. Firstly, the firm revealed that it has always complied with KYC and AML policies. Also, the cryptocurrency exchange maintained that users’ funds are safe. WazirX announced that its transactions with Binance are recorded on its database. Accordingly, the cryptocurrency exchange divulged that it only allows bank transfers which makes the transactions traceable.