Changpeng Zhao, CEO of Binance, claimed that the company “does not own any shares” in Zanmai Labs, the parent company of Indian cryptocurrency exchange WazirX. This, a day after India’s Enforcement Department (ED) froze $8 million in WazirX bank balances earlier.
According to a statement, ED has been investigating WazirX since last year for its alleged role in a money laundering scheme. On August 5, the ED conducted searches on WazirX co-founder and CTO Samir Mahatri after suspicions of links to Chinese loan applications surfaced.
Flood gates wide open
Binance has been in question since the start of the legal investigation after CZ denied acquiring WazirX. In fact, CZ claimed on Twitter that the acquisition of WazirX was “never completed”.
It is noteworthy, however, that this acquisition was announce Way back in November 2019. A subsequent tweet from Czechoslovakia confirmed the purchase, with the CEO explicitly stating, “Indian cryptocurrency exchange owned by Binance WazirX…”
» Indian cryptocurrency exchange WazirX exceeds $200 million in daily trading volume; Looking to $1 billion in 2021 – The Financial Express https://t.co/t3GD7UwvYt
– CZ 🔶 Binance (cz_binance) April 5, 2021
On the contrary, his last four parts Mail He denied this, with CZ arguing that Binance was the target of “incorrect reporting.”
“On November 21, 2019, Binance published a blog post that it has “acquired” WazirX. This transaction has not completed. Binance has never – at any time – owned any shares in Zanmai Labs, the entity that operates WazirX,” Changpeng said. Zhao.
On the other hand, WazirX founder Nischal Shetty refuted CZ’s allegations in his own Twitter posts. Shetty allegedAnd the
1/ Facts about WazirX & Binance: WazirX has been acquired by Binance Zanmai Labs is an Indian entity owned by me and my co-founders Zanmai Labs has a license frm Binance to operate INR-Crypto pairs in WazirX. Cryptocurrency withdrawal…”
Not the first legal battle
Binance is no stranger to legal battles as it has been accused of legal wrongdoing multiple times. according to BloombergInvestigations into Binance have been expanded to look into potential insider trading and market manipulation.
In fact, a think tank in the Philippines claimed Binance was a “risk to the public” earlier in July. A new lawsuit has been filed against the organization alleging misrepresentation of TerraUSD, a stablecoin. Earlier in July, developer CryptoFelon claimed that Binance CEO Changpeng Zhao was trying to “steal his domain.”