Leading Crypto Platform WazirX Denies Allegations Raised By Binance

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Leading Crypto Platform WazirX Denies Allegations Raised By Binance

Indian WazirX Refutes Binance’s Allegations

Binance global had recently raised several allegations and accusations against Zanmai Labs. According to Binance, Zanmai Labs is the crypto firm that runs and operates India’s leading crypto trading platform WazirX.

At some point in time, Binance leased out its digital wallet services to Zanmai Labs. On the other hand, Zanmai Labs has further leased out Binance’s digital wallet app service to WazirX, as has been alleged by Binance.

However, since the dispute had developed between Binance and Zanmai Labs, Binance took an initiative and curtailed Zanmai’s access to its wallet service.

WazirX’s Issues Clarification Statement

As a consequence, WazirX also became unable to use the service which was being used by WazirX’s customers in India.

To clarify its position, WazirX issued a statement on Tuesday in which the Indian crypto firm has denied Binance’s allegations.

In the statement, WazirX denied having any relationship with the firm which had been in dispute with Binance.

WazirX has alleged that Binance’s assumption that Zanmai is running the affairs of WazirX is entirely wrong and misguiding. In this context, WazirX opined that it shall be taking necessary steps against Binance’s allegations.

It said specifically on its official webpage that Binance had raised false and misleading accusations against the firm.

It claimed that Binance had made unsubstantiated allegations on its blog and had spread wrong opinions about the firm. WazirX has opined that it will be seeking legal recourse against the accusations leveled by Binance.

A Public Dispute

Binance had alleged a few days ago that Zanmai was raising baseless allegations against Binance. The dispute developed when Zanmai accused Binance of causing trouble while managing the affairs of WazirX.

Zanmai had further alleged that though Binance knew that it was operating WazirX, Binance was intentionally interfering in the operations.

Furthermore, Zanmai directly accused Binance of engaging with customers’ assets at WazirX.

Thereafter, on 3rd February 2023, Binance took notice of the statements passed by Zanmai against Binance.

Binance refuted the claims of Zanmai by alleging that the latter’s narrative is concocted and false. It also denied interfering in Wazrix’s and the platform’s users’ activities.

Background of the Dispute

The relationship between Binance and Zanmai soared when in August 2023, WazirX’s management claimed that it was a subsidiary of Binance.

The founder of WazirX claimed that the platform’s operations are run and managed entirely by Binance.

Upon this Zanmai stepped into the discussion and claimed that Binance does not control WazirX. It further claimed that Zanmai was legally authorized to run Wazix.

According to Zanmai, Binance had legally issued the firm a license to establish, run, operate, and manage a crypto firm in India.

Under this license, WazirX was established and that is why Zanmai had been claiming that WazirX is accountable to Zanmai.

Concerns of WazirX Customers

As a result of the ongoing dispute involving Binance, WazirX, and Zanmai, Binance suspended access to its digital wallet service.

Consequently, the customers of WazirX cannot be able to use the service and would be required to re-locate their funds.

In this connection, a deadline has been given by Binance prior to whose expiry, customers would need to re-locate crypto funds.

Meanwhile, WazirX has been trying to calm down its customers and suggesting they not panic.

Furthermore, WazirX has assured its customers that the issue shall be resolved very soon. However, as an interim setup, WazirX has made alternate arrangements for storing customers’ crypto assets.