Binance Terminates Ties With WazirX, ceases offering wallet services

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Key takeaways:

  • Wazirx, an Indian cryptocurrency exchange, can no longer use Binance wallet services, according to a statement from Binance.
  • According to Binance, Zanmai’s refusal to retract inaccurate statements regarding its relationship with the larger firm is what caused the situation to escalate.

Binance will cease providing WazirX with its wallet and other technical services, increasing hostilities with the Indian cryptocurrency exchange it originally sought to purchase.

Zanmai Labs was asked by Binance to withdraw all of its money from the WazirX accounts. The argument began with the latter’s assertion that Binance operates WazirX.

The Indian company had not fully removed assets held in the Binance wallets that it uses for Wazirx’s activities” at the time of its announcement, according to Binance, even though Zanmai has expressed its intent to remove money from the appropriate accounts.

In the most recent development in a protracted conflict between the two businesses over their connection, WazirX announced it was moving funds held with Binance for its operations to other wallets after Binance indicated it was discontinuing the service. WazirX said that the money transfer process was underway and that it would be finished in a matter of hours.

The message stated, “Users can continue to trade, deposit, and withdraw funds as usual.” “Your money is secure with us,” The sum of the transferred money wasn’t made public.

According to Binance’s official press release, Zanmai has misrepresented Binance’s apparent involvement with and responsibility for running the WazirX exchange in a number of ways.

The ownership of WazirX by exchange behemoth Binance has been the subject of a months-long conflict between the two businesses.

Assets from WazirX, which Binance purchased in 2019, were frozen in August of the previous year as part of an investigation into possible violations of foreign currency regulations.

The latest crypto exchange to adopt the proof of reserve strategy is WazirX in India. It announced its act of transparency on January 11 by saying:

“The overall amount of assets held by WazirX exceeds the number of assets held on behalf of its users. With this, we surpass all other cryptocurrency exchanges in India both in terms of volume and reserves.

Since 90% of user assets on WazirX are stored in Binance-based wallets and the remaining 10% are kept in both hot and cold storage wallets, the latest development marks a major turning point in the Binance-WazirX drama.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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