February 7, 2023

Changpeng Zhao (CZ), CEO of crypto exchange Binance Referred Customers who have cryptocurrency on WazirX must transfer it to the Binance platform.

He stated in a tweet that,

If you have money on WazirX, you must transfer it to Binance. So easy. We can disable WazirX wallets on a technical level, but we can’t/we won’t. As much as we tolerate arguments, we cannot/will not harm users.

This news was followed by the Enforcement Directorate (ED), which is India’s law enforcement agency, with its notification of the freezing of WazirX’s assets. WazirX has been linked to the world’s largest crypto exchange Binance. This investigation was conducted on suspicion of WazirX violation of foreign exchange rules.

After WazirX released a statement on Twitter about the disabling of WazirX wallets, there were multiple statements from Binance CEO and founder of WazirX regarding whether Binance had requested WazirX. This also intensified the conflict between Binance and WazirX.

Cryptocurrency exchange WazirX evaluation of its business plan

WazirX did not agree with the allegations made by the ED in a press release. Crypto exchange WazirX is currently working on its next business plan. The Execution Directorate has frozen assets of $8.15 million (R646.70 million).

A WazirX spokesperson stated,

We have cooperated fully with the Implementation Department for several days and have responded to all their inquiries fully and transparently, and do not agree with the allegations in the ED press release. We are evaluating our further business plan.

The CEO of Binance was quick to issue a statement denying that the company had acquired WazirX nearly three years after WazirX and Binance announced the acquisition. CZ claimed that the acquisition of WazirX was never completed.”

However, Nischal Shetty, founder of WazirX, did not agree that this exchange was acquired by Binance.

Nischal Shetty also tweeted that Binance owns the WazirX domain name, has root access to Amazon AWS web hosting servers, owns all crypto assets, and receives crypto earnings.

Binance clarification regarding the Tweet by WazirX

Changpeng Zhao said in response to Nischal Twetty,

The founding team of Wazirx maintained control of the platform’s operations. We (Binance) are not given data or control over users, KYC, etc.

In addition, Zhao also confirmed,

We have no control over the trading system. I just gave AWS login, no source code, no possibility to post. I also reserved access to the AWS account, source code, deployment, etc.

The series of tweets was followed by another in which Czechoslovakia called WazirX “uncooperative”. He also mentioned that just because WazirX has not been cooperating with Binance similarly, the exchange may have been uncooperative with ED as well.

In response to the ED investigation, Nischal Shetty tweeted that Zanmai Labs, the entity that owns WazirX “has been cooperating with ED for over 7 days and has provided all requested data.”

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