Binance CEO Comes Out To Clarify That His Exchange Never Acquired WazirX As Incorrectly Reported By Some Media.
Contrary to some media reports, Binance’s CEO claims his exchange hasn’t acquired WazirX.
According to some recent media reports, Binance exchange acquired an Indian-based crypto exchange that is now the focus of authorities over accusations of money laundering. The Indian Enforcement Directorate (ED) has frozen $8.14 million of WazirX for ‘laundering of fraud money.’
ED searches the Director of WazirX Crypto-Currency Exchange & freezes its Bank assets worth Rs 64.67 Crore for assisting accused Instant Loan APP Companies in laundering of fraud money via purchase & transfer of virtual crypto assets.
— ED (@dir_ed) August 5, 2022
However, the latest clarification by Binance’s own CEO reveals that the claims that Binance exchange is the parent company of WazirX are false. CZ made his points known in a series of Tweets in a thread that sought to bare the facts that the Binance exchange has no direct connection with WazirX.
“Binance does not own any equity in Zanmai Labs, the entity operating 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.
— CZ 🔶 Binance (@cz_binance) August 5, 2022
Transaction Never Completed
The CEO made it known that, while Binance exchange has been attempting to acquire India’s largest crypto exchange, WazirX, a few issues hindered these efforts. Apparently, the transaction needed to close the deal has never been completed, and therefore Binance and WazirX are still separate entities. He said:
“On 21 Nov 2019, Binance published a blog post that it had “acquired” WazirX. This transaction was never completed. Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX.”
Role Of Binance On WazirX
However, CZ admitted that Binance provides wallet services to WazirX and off-chain integration to help save on transaction fees. These two services are provided as a tech solution and are the only links the two entities currently have. Other functions like wallet creation, KYC protocols, deposits, trading, and withdrawals are handled by WazirX as a crypto exchange itself.
“Binance only provides wallet services for WazirX as a tech solution. WazirX is responsible all other aspects of the WazirX exchange, including user sign-up, KYC, trading and initiating withdrawals.”
This distances Binance from the current troubles faced by WazirX. Apparently, WazirX was discovered to be running fraudulent loan applications that were identified as a money laundering scheme by the authorities. WazirX is operated by Zanmai Labs, which has no links to Binance. Banks’ assets belonging to WazirX were frozen following the discovery by Indian authorities.
Binance CEO further says users who have issues with WazirX can simply transfer their funds to Binance.
Binance Co-operates With Law Enforcement
CZ emphasized that Binance exchange is known to fully co-operate with law enforcement agencies worldwide and that the exchange would be happy to work with such agencies on the case. Binance is one of the largest crypto exchanges in the world.