India-based cryptocurrency trading platform WazirX has continued its verbal tug-of-war with world-leading digital assets service provider Binance over its ownership.
In effect, Binance has declared that it will no longer provide wallet services for WazirX and its customers. WazirX is expected to withdraw all of its finds in the renowned exchange and this has alleviated certain concerns in the minds of many users.
Previously, many customers were worried about the fate of their funds if Binance ended its connection with the Indian cryptocurrency exchange. Before it became a significant problem, Binance contacted Zanmai Labs which is the smaller exchange’s operator to design an agreement that will see the exit of WazirX’s remaining assets from Binance’s wallets.
While this may seem like a solution, it could also signify the continuation of resentment between both entities. Zanmai Labs has been called severally by Binance to retract its statement which was false and misleading.
As per a statement by Binance “As an exception, we have invited Zanmai to work out arrangements with us to withdraw any remaining assets in the relevant accounts after [Feb. 3]. However, the responsibility ultimately lies with the Zanmai team to make the withdrawals expeditiously.” The process has commenced but is yet to be completed.
WazirX Claims it is Owned by Binance
This feud began last year when Nischal Shetty, the co-founder of WazirX made a public announcement via a tweet, stating that Binance had acquired WazirX. However Binance Chief Executive Officer (CEO) Changpeng Zhao argued that his company “never completed” the acquisition deal, instead, they were only partners and nothing more.
Attempting to clarify their relationship, CZ said Binance was only responsible for providing wallet service and an off-chain transaction solution to WazirX. Shetty insisted that this was not true as Binance is also the owner of the company’s domain name amongst other things. Markedly, this verbal battle was happening amidst a lawsuit against WazirX by Indian authorities.
The crypto trading platform allegedly permits funds from condemned instant loan app companies in the laundering of fraudulent money through the purchase and transfer of virtual crypto assets. Consequently, the Enforcement Directorate (ED) confiscated assets worth up to $8.13 million from the exchange.