WazirX Says Binance’s Allegations Are False And Misleading

WazirX, a crypto exchange operating in India, has stated that the allegations leveled against it by WazirX are wrong and deceptive. The platform added that it is taking the necessary measures to deal with the actions taken by Binance. As the company added, it is pursuing recourse along with shielding the legal rights of the platform, as mentioned in a recent blog post.

Binance Asks WazirX to Withdraw Assets from the Exchange

On the 26th of January, Binance (the top crypto exchange) had given an ultimatum to WazirX to withdraw what it termed as wrong public statements or discontinue utilizing the wallets issued by Binance by the 3rd of February. After that, on the 3rd of this month, Binance stated that the crypto exchange was exceptionally inviting the Indian crypto exchange to operate on arrangements for the withdrawal of any assets remaining in the accounts.

This solution appears to have alleviated the apprehensions regarding the consumer funds if WazirX and Binance terminate their partnership, keeping in view that the Indian crypto exchange revealed the usage of Binance wallets by 90% of its consumers for their assets.  On the same day, WazirX claimed it started the procedure of transacting funds to multi-sig wallets.

The platform added that it anticipates the procedure to be accomplished within some coming hours. In a blog published on Tuesday, WazirX noted that the consumers of the company do not require being worried about the announcement made by Binance. According to the Indian crypto exchange, they have carried out measures to guarantee that the digital assets possessed by the firm are kept in line with the standards followed by the industry.

It clarified that the clients can keep on withdrawing, depositing, and trading their funds normally. A blog post was published by Binance in 2019’s November over the acquisition of WazirX. In the blog post, the crypto exchange declared acquiring the Indian crypto exchange. However, the dispute started after that.

Back in 2022’s August, WazirX’s CEO Nischal Shetty and Changpeng Zhao (the CEO of Binance) fought with words concerning the Indian crypto exchange’s ownership.  Shetty openly tweeted that WazirX had been acquired by Binance. Nonetheless, disagreed with this statement saying that his crypto exchange never accomplished the funds transfer to obtain WazirX. The controversy puzzled the investors in the matter of WazirX’s ownership.

One reason behind this change of plans was that the Indian authorities raided the Mumbai-based office of WazirX on some suspicions. According to the officials, the crypto exchange assisted sixteen fintech firms in money laundering. As a result of this, Binance stepped back from acquiring the Indian crypto platform. Subsequently, it updated the acquisition-related blog post.

Binance edited it by noting that the transaction for the acquisition was not accomplished. Rather, the transaction was restricted to a contract to buy specific intellectual property and assets. In addition to this, a spokesperson from the top crypto exchange asserted that the reports regarding WazirX’s acquisition by Binance were not true.

WazirX Asserts that Binance Made an Unethical Demand

Then, on the 26th of January this year, a letter was sent by Binance to Zanmai Labs (the official name of WazirX). In that letter, while responding to Shetty’s former acquisition-related statements Binance asked the Indian crypto exchange to issue a pre-written statement for clarification. Hence, WazirX reacted to this and said that an unethical demand was made in that letter.

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