WazirX transfers digital assets after Binance ultimatum

Both the Indian crypto exchange WazirX and the international crypto exchange Binance have accused each other of lying

February 08, 2023 03:45 pm | Updated 06:17 pm IST

File photo of the Binance logo

File photo of the Binance logo | Photo Credit: Reuters

The Indian crypto exchange WazirX said that international exchange Binance’s claims about it having no control over WazirX and its operator Zanmai are “false and unsubstantiated,” but has confirmed that it is transferring digital assets.

In a blog post early this month, Binance said that unless Zanmai clarified its “false public statements,” it would have to stop using Binance’s wallet services. A proof of reserves document released by WazirX in early 2023 reported that around 90% of its users’ crypto assets were held via Binance.

“The allegations made by Binance in their blog are false and unsubstantiated. As far as Binance’s actions are concerned, we are taking the necessary steps to seek recourse and protect our legal rights,” said WazirX in its blog post on February 7, urging users not to worry.

On February 3, WazirX had said it was moving assets to multi-signature wallets.

The Indian exchange further said in a blog post that assets would be stored “in accordance with industry-leading standards” and that trading would continue as usual.

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Binance has steered itself away from the Indian exchange in recent months, especially when the Enforcement Directorate froze WazirX’s bank account while investigating money laundering allegations.

“Binance has no control over WazirX user funds or any aspect of the WazirX exchange’s operations. Rather, as we do for many individuals and organizations, we provided wallet and related technology services to the exchange’s operator, Zanmai Labs (“Zanmai”), – a service we are terminating,” said Binance in its own blog post on February 3.

Binance confirmed acquiring WazirX in 2019, but later updated its statement in August 2022 to note that the acquisition was only an agreement for purchases. The exchanges and their CEOs have traded barbs on Twitter since then, contradicting each other’s claims about their business ties.

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