Changpeng Zhao, founder and CEO of Binance cryptocurrency denies on having any control on the WazirX systems, which is an Indian cryptocurrency exchange.
Changpeng tweets “Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems. WazirX has been uncooperative with us, and looks like uncooperative with ED as well”.
Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.
WazirX has been uncooperative with us, and looks like uncooperative with ED as well.
— CZ 🔶 Binance (@cz_binance) August 6, 2022
The Binance has claimed that it does not own any equity in the Zanmai Labs which operates WazirX. This came after the Enforcement Directorate (ED) on Friday seized bank balances of Rs 64.67 crore belonging to WazirX.
Accordingly, ED says that these Chinese loan lending companies, which were closed down in India, redirected their funds through crypto exchanges, and the maximum amount was transferred into the WazirX exchange. Nischal Shetty, the managing director of WazirX said that WazirX only has an IP and preferential agreement with Binance. However, Zanmai claims that they are only in INR-to-crypto transactions and all the other transactions are made by Binance on WazirX.
According to Zhao, Binance only offers wallet services for WazirX as a tech solution and has not acquired WazirX. Also, Zhao said that WazirX is itself responsible for all of the WazirX exchanges including trading, KYC, withdrawals, etc.
