world’s largest cryptocurrency exchange Binance announced the end of wallet services for WazirX Exchange and asked the exchange to withdraw its funds.
WazirX co-founder Nischal Shetty and Binance CEO Changpeng Zhao had a heated discussion over ownership of the exchange in August 2022. Shetty had publicly tweeted that Binance had purchased WazirX.
Binance CEO and WazirX CEO Had an Argument
Changpeng Zhao, on the other hand, argued that his company never completed the acquisition of WazirX. The controversy has confused investors regarding the ownership of the Indian crypto exchange.
But the controversy took a new turn today, when Binance announced to Zanmai Labs, the parent company of WazirX, that it is ending its wallet services.
Binance alleges that Zanmai Labs made false claims about the former company that controlled its operations. The company stated on January 26th that it would withdraw its misrepresentations from Zanmai Labs or risk losing its wallet services.
However, the parties ultimately could not come to an agreement and Binance decided to cease its wallet services to WazirX.
The company has set a deadline for Zanmai Labs to withdraw all remaining assets by February 3, but the Indian exchange has yet to fully realize that.
According to WazirX Proof of Reserves (PoR), it has a total assets of 246.31 million USDT. The PoR report released on January 11 revealed that 90% of users’ funds are stored in their Binance wallets.
WazirX users are concerned about their funds due to a significant amount being held by Binance. Indian crypto users are currently facing challenges such as high Tax Cuts (TDS) and a 30% flat tax on crypto earnings. According to recent announcements, non-payment of TDS could lead to imprisonment of up to six months.
*Not investment advice.
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