Binance CEO ‘CZ’ Refutes Claim of Binance Owning WazirX

WazirX Stuck in Tough Tides Between Regulators' Scrutiny and Binance's Ignorance
  • The Indian exchange’s bank assets were frozen.
  • The deliberations, which were made public in November 2019, fell through.

Hours following the investigation by India’s Enforcement Directorate (ED), Binance CEO CZ commented on the company’s relationship with WazirX. The Indian exchange’s bank assets were frozen when police raided the company’s headquarters on suspicion of money laundering. WazirX has been charged by the ED of aiding instant loan app firms in illegal cryptocurrency transactions.

Around $80,59,552 in bank accounts have been frozen, according to the Enforcement Directorate (ED). For aiding suspected instant loan app firms in laundering money from fraudulent transactions, it was seized, it said.

Acquisition Never Went Through

In the meanwhile, Binance CEO CZ replied to claims that Binance acquired WazirX in 2019. In a tweet, the CEO of Binance said that Binance does not own WazirX, contrary to claims. According to him, the transaction was attempted but never completed. Binance does not hold any shares in WazirX’s parent firm, as he explained through a tweet sent on Friday. To put it another way, according to CZ, the deliberations, which were made public in November 2019, fell through.

The CEO stated:

“On 21 Nov 2019, Binance published a blog post that it had “acquired” WazirX. This transaction was never completed. Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX.”

Binance is merely a technological solution provider for WazirX, according to the company’s CEO. According to him, off-chain transactions are also included in the cooperation to save money on network costs. A 30% tax on digital assets and a 1% levy on all crypto transactions have made it tough for the crypto community in India.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.