WazirX-Binance relationship: a timeline of events as they unfold

While Binance, the world’s largest crypto exchange by trading volume, proudly announced that it had acquired WazirX in a blog post on its website in November 2019, Changpeng Zhao, the company’s CEO, described the Indian crypto exchange and global crypto exchange. shocked the community. Agreement between the two parties.

Amidst the war of words going on between of wazirx The founders, Nischal Shetty and Changpeng Zhao, investors are undoubtedly searching for defining answers about who owns and controls WazirX.

Decoding the 2019 announcement

Along with a group photo showing Zhao and Shetty smiling, the blog post announced the acquisition of WazirX by Binance and detailed how platform users will be able to buy the cryptocurrency using Indian Rupee (INR), Tether (USDT). Like invest in and access stable coins. Full range of cryptocurrencies directly through Binance’s trading platform.

It also explicitly states that the acquisition and integration of WazirX is part of the company’s strategy to grow its growing list of global partners, to provide the global crypto community with easy access to cryptocurrencies in a fast and secure manner.

Zhao elaborated on Binance’s commitment to developing the Indian crypto ecosystem and making India a global blockchain innovation hub.

Shetty commented on how the acquisition gives WazirX an opportunity to expand beyond India and cater to a wider audience, manufacturing Fiat on-ramp with a particular focus on developing countries.

Social media explosion at suspicious times

WazirX is currently in the limelight for allegedly aiding instant loan app companies in money laundering by the Enforcement Directorate (ED), India’s premier law enforcement agency fighting economic crimes.

In fact, the agency has frozen the financial assets of the Indian crypto exchange after a search operation was conducted under the Prevention of Money Laundering Act (PMLA) on August 3, 2022.

Shortly after, Zhao posted a series of tweets on his official Twitter account on August 5, seemingly distancing Binance from all operations of WazirX or its holding company, Zanmai Labs.

In his tweet, Zhao clarified that Binance has no equity in Zanmai Labs and only provides wallet services as a technology solution to WazirX.

Furthermore, he added that the recent developments surrounding WazirX deeply concerned Binance and stressed that the Indian crypto exchange is solely responsible for all aspects such as user sign-ups, KYC, trading and withdrawals.

Apparently, it has also elicited a response from Shetty, the head of the two crypto firms still having a war of words.

How WazirX sees its association with Binance

While categorically denying all the allegations made by the ED and reiterating WazirX’s cooperative stance, Shetty has been posting a series of tweets detailing how Binance is the rightful owner of WazirX on its Twitter account.

He further clarified that Zanmai Labs is a separate entity and that Binance owns the WazirX domain name, has root access to the AWS servers, and retains all profits and crypto assets stored on the platform.

Elaborating further how Zanmai Labs is an Indian entity owned by Shetty and other co-founders, he said that Zanmai Labs has a license from Binance to operate INR-crypto pairs in WazirX and Binance to operate crypto pairs and processing withdrawals. Manages crypto.

Binance, on the other hand, clarified that the 2019 ‘acquisition’ was limited to an agreement to purchase certain assets and intellectual property of WazirX, with WazirX continuing to be operated and managed by Zanmai Labs.

While a battle of words erupts between the two personalities, WazirX users remain in limbo, even though the company’s founder reiterates that all crypto assets and fiat money deposited are safe.

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