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Binance CEO clarifies Binance never own WazirX after ED allegations

Binance CEO Changpeng Zhao clarifies that Binance doesn’t own WazirX after ED money laundering allegations.

Following the Directorate of Enforcement (ED) action to freeze Rs 64.67 worth of bank assets of the largest Indian crypto exchange, WazirX, which was allegedly backed by Binance, on August 5. The world’s largest crypto exchange, Binance CEO Changpeng Zhao announced on Twitter that Binance does not control and never acquired WazirX.

Binance CEO CZ claimed that the deal was never finalised on August 6. Zhao confirmed the separation on Twitter, writing, “Binance does not hold any interest in Zanmai Labs, the company running WazirX and created by the original founders.”

He stated that “on November 21, 2019, Binance released a blog post announcing that it had “bought” WazirX.” However, the deal was never finalised. At any point in time, Binance has never owned any shares in Zanmai Labs, the company that runs WazirX.

“As a technical solution, Binance exclusively offers WazirX wallet services. In order to reduce network fees, off-chain transactions are also included. All other components of the WazirX exchange, including user registration, KYC, trading, and initiating withdrawals, are handled by WazirX,”, he added.

In addition, Zhao voiced serious concern over rumours regarding WazirX’s functioning and Zanmai Labs’ management of the platform. He even pledged that Binance would assist ED in any way possible. The director of WazirX was also subject to legal proceedings by the central investigating agency for aiding rapid lending app companies in the theft and transfer of crypto assets.

WazirX CEO and co-founder, Nischal Shetty also stated that WazirX will provide full support to ED during the investigation while denying the allegations.

The Rajya Sabha was informed by Minister of Finance, Pankaj Choudhary, this week that the ED is looking into two instances involving WazirX under the Foreign Exchange Management Act of 1999 (FEMA).

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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