WazirX Declares The Allegations From Binance "False And Misleading," And Plans To Take Legal Action

WazirX Declares The Allegations From Binance “False And Misleading,” And Plans To Take Legal Action

Updated: 08 February 2023

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According to a Tuesday blog post by WazirX, an Indian cryptocurrency exchange, “accusations made by Binance on their blog are untrue and unfounded,” and concerning Binance’s activities, WazirX is taking the required steps to seek redress and safeguard its legal rights.

Which firm owns the Indian exchange is at the centre of the dispute between Binance as well as Zanmai Labs, the parent company of WazirX, situated in Singapore. After Binance Director Changpeng Zhao announced that Binance didn’t represent WazirX in August 2022, WazirX founder Nischal Shetty responded by making the internal debate public.

According to Shetty, both sides have been holding secret meetings to resolve the ownership dispute in the weeks since that time to prevent collateral harm from occurring to consumer funds.

WazirX was given a deadline by Binance of February 3 to stop using its wallets or remove what it deemed a “false as well as misleading narrative” by January 26, according to a report at the time by CoinDesk.

However, Binance stated that it was granted an exception and that WazirX was welcome to “work out procedures to remove any remaining funds in the relevant accounts” in a blog post on February 3. According to WazirX, 90% of its users’ assets are stored in Binance wallets, so the solution allayed concerns about what would happen to user money if Binance and WazirX ended their partnership.

Later, on February 3, WazirX announced that it had started the process of moving funds to multi-signature wallets and anticipated completion “within a few hours.”

WazirX wrote in a blog post on Tuesday that the cash transfer process appeared to be finished, so its “customers do not need to be concerned by Binance’s news.”

“WazirX’s digital assets will be stored in line with industry-leading standards thanks to the arrangements we’ve made. Users may go on trading, making deposits, and withdrawing money as normal.”

In response to CoinDesk’s seeking comment, Binance delayed its response.

Wrapping Up

In recent months, Binance has refrained from the Indian exchange, particularly after the Enforcement Directorate seized WazirX’s bank account while looking into suspicions of money laundering.

WazirX was acquired by Binance in 2019, but the company subsequently clarified in an August 2022 announcement that it was simply an arrangement for purchases. Since then, the exchanges and their CEOs have exchanged jabs on Twitter, contradicting one another’s claims about their commercial ties.

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