{"id":6211,"date":"2022-08-06T14:44:14","date_gmt":"2022-08-06T14:44:14","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=6211"},"modified":"2022-08-06T14:44:15","modified_gmt":"2022-08-06T14:44:15","slug":"binance-moves-to-dissociate-self-from-wazirx-over-recent-allegations","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=6211","title":{"rendered":"Binance moves to dissociate self from WazirX over recent allegations"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Binance founder Changpeng Zhao has denied that the exchange owns any equity in Zanmai Labs, the company behind the Indian crypto exchange WazirX.<\/p>\n<p lang=\"en\" dir=\"ltr\">Quick thread on Binance and WazirX, and some incorrect reporting.<\/p>\n<p>Binance does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.<\/p>\n<p>1\/4<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 5, 2022<\/p>\n<p>The revelation followed India\u2019s Enforcement Directorate\u2019s decision to freeze an account belonging to WazirX over allegations of money laundering.<\/p>\n<p>In the Aug. 5 Twitter thread, Zhao said that Binance did not complete the acquisition of WazirX as claimed by a blog post\u00a0published on November 21, 2019. CZ said:<\/p>\n<p>\u201cBinance has never \u2013 at any point \u2013 owned any shares of Zanmai Labs, the entity operating WazirX.\u201d<\/p>\n<p>He continued that Binance only provides wallet services to WazirX and an integration that uses off-chain transactions to save on network fees. CZ stated that:<\/p>\n<p>\u201cWazirX is responsible (for) all other aspects of the WazirX exchange, including user sign-up, KYC, trading and initiating withdrawals.\u201d<\/p>\n<p>Zhao also mentioned that the recent allegations about the operations of WazirX are concerning and do not align with the values of Binance as it collaborates with law enforcement globally.<\/p>\n<p>CZ also stated that WazirX has been uncooperative with Binance. He said Binance had requested the transfer of the WazirX system source code as recently as this February but was rejected.<\/p>\n<p lang=\"en\" dir=\"ltr\">Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.<\/p>\n<p>WazirX has been uncooperative with us, and looks like uncooperative with ED as well.<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 6, 2022<\/p>\n<p>Zhao advised WazirX users to transfer their funds to his exchange as he \u201ccould disable WazirX wallets on a tech level, but we can\u2019t\/won\u2019t do that\u201d to not hurt the users, he added.<\/p>\n<p lang=\"en\" dir=\"ltr\">If you have funds on WazirX, you should transfer it to Binance. Simple as that.<\/p>\n<p>We could disable WazirX wallets on a tech level, but we can&#8217;t\/won&#8217;t do that. And as much debates as we are enduring, we can&#8217;t\/won&#8217;t hurt users. \ud83d\ude4f<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 5, 2022<\/p>\n<p lang=\"en\" dir=\"ltr\">Sad that these have to be debated on Twitter:<\/p>\n<p>Binance provides wallet services for WazirX.<br \/>WazirX domain is transferred to our control.<br \/>We were given a shared access to an AWS account.<\/p>\n<p>We could shutdown WazirX. But we can&#8217;t, because.. 1\/2 https:\/\/t.co\/YoMIgAHC5v<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) August 5, 2022<\/p>\n<p>As of press time, Binance\u2019s official website still showed the announcement of its WazirX acquisition.<\/p>\n<h2>WazirX founder insists Binance bought the exchange<\/h2>\n<p>WazirX\u2019s founder Nischal Shetty has insisted that Binance indeed bought the exchange.<\/p>\n<p lang=\"en\" dir=\"ltr\">1\/ FACTS about WazirX &amp; Binance:<\/p>\n<p>WazirX was acquired by Binance<\/p>\n<p>Zanmai Labs is an India entity owned by me &amp; my co-founders<\/p>\n<p>Zanmai Labs has license frm Binance to operate INR-Crypto pairs in WazirX<\/p>\n<p>Binance operates crypto to crypto pairs, processes crypto withdrawal\u2026<\/p>\n<p>\u2014 Nischal (Shardeum) \u26a1\ufe0f (@NischalShetty) August 5, 2022<\/p>\n<p lang=\"en\" dir=\"ltr\">\u201cWe could shut down WazirX\u201d \u2013 Proves you have control<\/p>\n<p>\u201cShared access of AWS\u201d \u2013 You have ROOT access of AWS! Anyone with root access controls AWS<\/p>\n<p>\u201cWazirX domain transferred to our control\u201d \u2013 Good to see you confirm that<\/p>\n<p>Only control now is Zanmai, why are you not taking it? https:\/\/t.co\/5E4zzWiOI7<\/p>\n<p>\u2014 Nischal (Shardeum) \u26a1\ufe0f (@NischalShetty) August 6, 2022<\/p>\n<p>Shetty added that Zanmai Labs is an entity owned by him and other co-founders.<\/p>\n<p>According to him:<\/p>\n<p>\u201cZanmai Labs has a license from Binance to operate INR-Crypto pairs in WazirX, but Binance operates crypto to crypto pairs, processes crypto withdrawals.\u201d<\/p>\n<p>He added that Zanmai and WazirX are two different entities, and Binance owns the WazirX domain name, has access to all crypto assets on the exchange, and gets all the crypto profits.<\/p>\n<p>WazirX\u2019s user agreement showed that Binance offered crypto-related services for the Indian-based exchange.<\/p>\n<p>Meanwhile, Shetty said that all crypto and Indian rupees on WazirX are safe, and the exchange complies with KYC and AML standards.<\/p>\n<p lang=\"en\" dir=\"ltr\">All user assets \u2013 Crypto &amp; INR on WazirX are safe<\/p>\n<p>WazirX has always ensured KYC is conducted, AML policies are in place<\/p>\n<p>We only allow bank transfers so everything is traceable<\/p>\n<p>WazirX to Binance transfer is recorded in our database ALWAYS and it\u2019s ONLY between users own account<\/p>\n<p>\u2014 Nischal (Shardeum) \u26a1\ufe0f (@NischalShetty) August 6, 2022<\/p>\n<h2>Indian crypto community in limbo<\/h2>\n<p>The conflicting assertions have sparked debate within the Indian crypto community as many wonders why Zhao denies WazirX ownership<\/p>\n<p>CryptoWhale alleged that there are 93 legal documents confirming Binance\u2019s ownership of WazirX, including a user agreement last reviewed on July 1, 2022.<\/p>\n<p lang=\"en\" dir=\"ltr\">Immediately after the news broke that India\u2019s WazirX exchange is being probed by authorities for money laundering, Binance CEO CZ claims they never acquired the firm.<\/p>\n<p>Yet 93 legal documents confirm Binance owns them, and CZ even admitted it in tweets last year. pic.twitter.com\/Gub4urthgV<\/p>\n<p>\u2014 CryptoWhale (@CryptoWhale) August 5, 2022<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/binance-moves-to-dissociate-self-from-wazirx-over-recent-allegations\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Binance founder Changpeng Zhao has denied that the exchange owns any equity in Zanmai Labs, the company behind the Indian crypto exchange WazirX. Quick thread on Binance and WazirX, and some incorrect reporting. Binance does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders. 1\/4 \u2014 CZ [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-6211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6211"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6211\/revisions"}],"predecessor-version":[{"id":6213,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6211\/revisions\/6213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/6212"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}