Binance and WazirX vow to cooperate with the Directorate of Enforcement

The two squads have agreed to cooperate with the Directorate of Enforcement (ED) over the ownership of WazirX and shady transactions.
The two squads have agreed to cooperate with the Directorate of Enforcement (ED) over the ownership of WazirX and shady transactions.

After a public standoff between Binance CEO Changpeng Zhao and WazirX CEO Nischal Shetty on Saturday, the two squads have agreed to cooperate with the Directorate of Enforcement (ED) over the ownership of WazirX and “shady” transactions.

Notably, there has been serious confusion over the ownership of the Indian exchange, and several Indian news platforms provided a follow-up on the problem on Monday. While Zanmai Labs, the company that runs WazirX, was reportedly considering taking Binance to court for ownership of the Indian exchange, Money Control published an article based on an interview with Shetty that claimed legal proof that Binance is the real owner of WazirX.

Who owns WazirX?

The most recent incident comes after a Friday raid by the Directorate of Enforcement (ED) on one of Zanmai Labs’ directors and the subsequent seizure of a bank account with an $8 million balance.

“WazirX does not collect the requisite documents in clear violation of the basic mandatory Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT) precaution norms and FEMA guidelines,” the ED stated in its charge sheet from June.

While Shetty is seen transferring the ownership burden to Binance, which was confirmed in an official blog post in 2019 to have taken over the Indian exchange, Binance CEO has distanced himself from WazirX ownership through his tweets from Saturday, which sparked a public standoff with Shetty. 

The 2019 acquisition, according to CZ, was never fully accomplished, and Binance’s cooperation with WazirX was restricted to offering technical solutions like wallet service and off-chain transactions.

Cooperation with ED

CZ expressed incredulity at the allegations made against WazirX in his tweets on Saturday and promised that Binance would assist the ED. He stated that his exchange collaborates with law enforcement agencies worldwide. 

“We would be happy to work with ED in any way possible.”

Shetty also reiterated that he would cooperate with the ED inquiry in his interview with Money Control. He noted:

“We have constantly been cooperating with the (ED’s) investigation and will continue to cooperate.”