• Binance has stopped its wallet services for WazirX following a public argument over who has ownership of the Indian exchange.
• A dispute was ignited after Indian authorities started looking into the exchange’s operations due to alleged violations of foreign exchange regulations.
• Binance emphasized that it does not own WazirX and only provides wallet and tech services to the Indian exchange.
Binance Ends Support For WazirX
Binance, the biggest crypto exchange globally, has discontinued its wallet support for WazirX, an Indian cryptocurrency platform, due to false claims made by Zanmai Labs, which manages WazirX. In a recent blog post, Binance mentioned that it had given Zanmai Labs an opportunity to withdraw its untrue statements or end the partnership. However, since it did not receive a satisfactory reply, it was forced to end the association. Binance has set a deadline of Feb. 3rd, 2023 at 11:59 UTC for Zanmai Labs to retrieve the funds utilized for WazirX’s operations.
Reason Behind Dispute
The dispute between the two firms on Twitter was sparked by who holds authority over WazirX after Indian authorities began investigating alleged violations of foreign exchange regulations by the exchange’s operations. A proof of reserves report revealed that 90% of user assets are stored in Binance wallets with total user asset value of $285 million represented by USDT tied to U.S dollar value. Of this amount 92% is held in Binance wallets while other exchanges hold only $26 million USDT in total..
Binance Does Not Own WazirX
Despite announcements pointing otherwise back in 2019, Binance emphasized that it does not own WazirX and only provides wallet and tech services to the Indian exchange. The final responsibility to carry out withdrawals falls on Zanmai Labs according to their announcement..
Deadline Set By BInance
Binance has set a deadline of Feb 3rd 2023 at 11:59 UTC for Zanmai labs to retrieve funds utilized for Wazirx’s operations before they discontinue any further support from their end..
Proof Of Reserves Published By CoinGabbar
The proof of reserves was published by Coingabbar—a third-party website that tracks crypto assets—accordingly showing 90% user assets are stored in Binance wallets with total user asset value being $285 million represented by USDT tied to U.S dollar value