Binance and WazirX CEOs Agree To Mitigate Conflict, Investors Experience Relief

Last week, the Enforcement Directorate (ED) commenced an investigation on one of the directors of Zanmai Labs Pvt Ltd and froze Rs. 64.47 Crore worth of bank assets belonging to the company.

The situation continued to worsen from here. Binance removed the off-chain crypto transfer to WazirX, which was a sought-after feature amongst the users. Additionally, Binance seemed to be denying the fact that it owns WazirX amid the turmoil- a matter which was supposedly closed and completed back in 2019.

According to sources, nine crypto exchanges, including WazirX, are allegedly being probed related to Chinese lending applications.

However, disputes and conflicts cannot continue forever. In the latest update, cryptocurrency exchange WazirX and Changpeng Zhao (CZ), founder of Binance Binance - binance@miceneurol.com Centralised ExchangeCryptocurrenciesTrading AppCryptocurrency investment , may soon come to a resolution over their ongoing ownership issue.

On August 11, New Indian Express reported that the attorneys from both the exchanges are working in close association in an effort to resolve the matter.

Ownership Spat over WazirX operations

Back in November 2019, Binance announced that it had successfully acquired WazirX. It also proclaimed that the 2019 acquisition was restricted to a purchase agreement for certain assets and intellectual property of .

However, Binance never made any investments in Zanmai Labs in the form of equity. 

However, nischal shetty nischal shetty Nischal Shetty is the Founder of India's largest and extremely trusted crypto exchange platform called WazirX. He is an entrepreneur who is passionate about technology, blockchain, crypto, and innovation. Founded WazirX in 2018 with a mission to involve every Indian in the blooming Blockchain revolution, built along with a team of passionate blockchain believers and hardcore traders. At present, he is also serving as Committer at Shardeum since February 2022 which is a sharded, infinitely scalable, community-driven completely decentralized layer 1 blockchain firm.   In 2010, Nischal became the Founder of Crowdfire which is a Software development company based in Mumbai. Via Crowdfire he helps individuals easily manage their social media profiles around multiple platforms by bringing them into a single and simple interface. Nischal Shetty began his career life holding and leading the position of Software Executive at 31 Infotech developing virtual solutions in Java and related technologies. Whereas In January 2009, he Founded Twi5 which is one stop place for discovering all the best Twitter applications and attracts thousands of visitors every day. Apart from this, he adores sharing his opinions on technology, development, and innovations. Nischal Shetty has been honored with several awards and recognitions some of which include Forbes 30 under 30, and the Inspiring CEO’s award by ET.  EntrepreneurDeveloper/ProgrammerChief Executive OfficerAuthor , Founder and CEO of the Indian exchange WazirX, claimed that the company was purchased by Binance and the WazirX domain name is being controlled by Binance. Shetty said,  “Binance has root access to AWS (Amazon Web Services) servers”.

After the Enforcement Directorate (ED) probe on Zanmai Labs went public, Shetty and engaged in a public argument with each other on Twitter. 

Shetty said, “Binance operates crypto to crypto pairs, processes crypto withdrawal.”

However, CZ claimed, ‘WazirX’s founding team controls the operations, including user sign-up, KYC, trading, and the initiation of withdrawals. Binance does not have influence over these aspects of the platform.’

“This was never transferred, despite our requests. The deal was never closed,” Cz added,

Patrick Hillmann, chief communications officer of Binance said “As a result of the recent regulatory action taken against Zanmai Labs Pvt Ltd, in relation to their operations of the WazirX Exchange, it has come to our attention that some users were given to believe that funds deposited in WazirX were managed by Binance. This is not the case.” 

This clearly hinted that Binance was trying to ensure that no dirt was thrown on its name because of its relation to WazirX.

Lack Of Communication

Sources report that both Company founders have not spoken to each other since February. 

When WazirX inquired Binance in February regarding the status of the purchase, Binance responded that the parent firm is in the process of restructuring. 

Zanmai Labs Speaks Out

Zanmai Labs has finally reacted to the recent ED probe against it, stating that it has no affiliation with any users who indulge in illicit activities.

Zanmai Labs stated, “WazirX is a platform co-operated by Zanmai Labs Pvt. Ltd. (Zanmai Labs) and Binance. Zanmai Labs has a no-tolerance policy towards any illegal activities using WazirX.”