did not own a stake in WazirX’s parent company Zanmai Labs, the founders of the two companies, have been embroiled in a war of words, exchanging claims and counterclaims on Twitter.
“After some media reports about the structure of Binance, we asked about it,” Shetty tweeted. “We were given an ambiguous answer that the parent organization is in the process of restructuring. Many months have passed, I am still waiting for the parent organization of Binance… Can Binance name the parent organization?”
1/ The transaction involved the parent organization BinanceAfter the media reported on the structure of Binance, we asked about it. We got… https://t.co/2DmPcCnt7v
— Nischal (Shardeum) ⚡️ (@NischalShetty) 1659791215000
He added that the deal included the sale of WazirX technology.
“This same technology was then licensed to Zanmai by Binance for the INR market. Post Licensing: Binance handles crypto trading, crypto deposit/withdrawal. Zanmai manages INR-Crypto trading, INR deposit/withdrawal,” Shetty wrote on Saturday.
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2/ The original deal included the sale of WazirX (IP) technology. The same technology was then licensed by Zanmai to Binance for… https://t.co/gAwyZHOz3N
— Nischal (Shardeum) ⚡️ (@NischalShetty) 1659791217000
Zanmai Labs is the Indian company behind WazirX. The Indian entity is 0.01% owned by Shetty and 99.99% owned by Singapore-registered Zettai Pte Ltd. Ownership of Zettai is split between Shetty, WazirX co-founder Siddharth Menon and Sameer Mhatre.
Zhao said WazirX users should transfer their funds to Binance.
“We could disable WazirX wallets on a technical level, but we can’t/won’t do that,” he tweeted. “And no matter how much debate we endure, we cannot/will not harm users.”
If you have funds on WazirX, you must transfer them to Binance. Everything is simple. We could disable WazirX wallets on… https://t.co/8mNGG1XqUQ
— CZ 🔶 Binance (@cz_binance) 1659734907000
Zhao also tweeted that Binance could shut down WazirX if it wanted to. “But we can’t because it harms users,” he wrote.
As of February, WazirX had over 10 million registered users.
“The WazirX founding team oversaw the operation of the platform,” Zhao wrote. “We (Binance) have never received data or control over users, KYC, etc. We would like to work with ED to fix these issues in WazirX.”
The WazirX founding team oversaw the operation of the platform. We (Binance) have never provided data or… https://t.co/1yw5Fqm09o
— CZ 🔶 Binance (@cz_binance) 1659734011000
The deteriorating relationship between WazirX and Binance comes as the Enforcement Administration (ED) said on Friday that it recently ransacked the premises of the directors of Zanmai Labs and
issued an order to freeze his bank account in the amount of Rs 64.67 crore..
According to the agency, WazirX has “actively” helped approximately 16 fintech companies under investigation for money laundering to redirect alleged proceeds of crime using the cryptocurrency route.
This was reported by ET on July 6. that ED requests information from several crypto exchanges in accordance with the Foreign Exchange Management Act (Fema). The ED also accused the exchange of having a complicated ownership structure.
“Recent allegations about WazirX operations and how Zanmai Labs operates the platform have caused Binance to be “deeply concerned,” CZ said in a statement. He also tweeted that WazirX is not affiliated with Binance and does not appear to be affiliated with ED.