June 5, 2023

Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance mention Customers who own cryptocurrencies on WazirX should transfer them to Binance’s platform.

He tweeted,

If you have funds on WazirX, you should transfer them to Binance. It’s that simple. We could technically disable the WazirX wallet, but we can’t/won’t do it. We can’t/won’t hurt users despite all the debate we’ve been having.

The news was followed by a notification from the Indian law enforcement agency, the Enforcement Directorate (ED), that WazirX’s assets had been frozen. WazirX has been linked to Binance, the world’s largest cryptocurrency exchange. This investigation is due to WazirX’s alleged violation of foreign exchange regulations.

Following WazirX’s statement on Twitter about disabling the WazirX wallet, the Binance CEO and WazirX founder made multiple statements about whether Binance needs WazirX. It also intensified the conflict between Binance and WazirX.

Crypto exchange WazirX evaluates its action plan

WazirX disagrees with the allegations made by the ED in the press release. Cryptocurrency exchange WazirX is currently working on their next action plan. The Bureau of Enforcement froze assets worth $8.15 million (rupee646.7 million).

A WazirX spokesperson said,

For several days, we have fully cooperated with the Department of Law Enforcement and responded to all of their inquiries fully and transparently, and we disagree with the allegations in the ED press release. We are evaluating our further action plan.

Binance’s CEO was quick to issue a statement denying the company’s acquisition of WazirX nearly three years after WazirX and Binance announced the acquisition. CZ claims the acquisition of WazirX was never completed,”.

However, Nischal Shetty, founder of WazirX, disagreed and said the exchange had been acquired by Binance.

Nischal Shetty also tweeted that Binance owns the WazirX domain, has access to its Amazon AWS web hosting servers, owns all crypto assets and earns crypto profits.

Binance Clarification on Tweet by WazirX

In response to Nischal Twetty’s tweet, Changpeng Zhao said,

The Wazirx founding team maintains control over the operation of the platform. We (Binance) have never obtained data or control over users, KYC, etc.

In addition, Zhao also emphasized that,

We have no control over the trading system. You just gave AWS login, no source code, no deployment capability. You also retain access to your AWS account, source code, deployments, and more.

A series of tweets was followed by another in which CZ called WazirX “uncooperative.” He also mentioned that only WazirX does not cooperate with Binance, so similarly the exchange may not cooperate with ED.

In response to the ED’s investigation, Nischal Shetty tweeted that Zanmai Labs, the entity that owns WazirX, “has been working with the ED for over 7 days and has submitted all required data.”

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