did not own a stake in the parent entity of WazirX Zanmai Labs, the founders of the two companies have been embroiled in a war of words, trading claims and counterclaims on Twitter.
“After some media reports on Binance’s structure, we asked about it,” Shetty wrote in a tweet thread. “We were given an ambiguous answer that the parent entity is being restructured. It has been several months, still waiting for the parent entity from Binance… Can Binance name the parent entity?
1/ The Deal Involved Binance’s Parent EntityAfter some media reports about Binance’s structure, we asked about it.
— Nischal (Shardeum) ⚡️ (@NischalShetty) 1659791215000
I added that the transaction included the sale of WazirX technology.
“The same technology was later licensed to Zanmai by Binance for the INR market. Post-licensing: Binance operates Crypto-Crypto trading, Crypto deposits/withdrawals. Zanmai operates INR-Crypto trade, INR deposit/withdrawals “Shetty wrote on Saturday.
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2/ The initial deal included the sale of WazirX technology (IP) The same technology was later licensed to Zanmai by Binance for… https://t.co/gAwyZHOz3N
— Nischal (Shardeum) ⚡️ (@NischalShetty) 1659791217000
Zanmai Labs is the Indian entity that operates WazirX. In the Indian entity, 0.01% is owned by Shetty and 99.99% is owned by Zettai Pte Ltd, registered in Singapore. Ownership of Zettai is shared between Shetty, WazirX co-founder Siddharth Menon and Sameer Mhatre.
Zhao said WazirX users should transfer their funds to Binance.
“We could technically disable WazirX wallets, but we can’t/don’t want to do that,” he tweeted. “And despite the many debates we are going through, we cannot/will not harm users.”
If you have funds on WazirX, you must transfer them to Binance. As simple as that, 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,” I wrote.
WazirX had over 10 million registered users in February.
“The founding team of WazirX has retained control of the platform’s operations,” Zhao wrote. “We (Binance) have never received any user data or verification, KYC, etc. We would like to work with OF to fix these issues in WazirX. »
WazirX’s founding team kept control of the platform’s operations. We (Binance) never give out data or… https://t.co/1yw5Fqm09o
— CZ 🔶 Binance (@cz_binance) 1659734011000
The sourness of the relationship between WazirX and Binance comes on the back of the Law Enforcement Directorate (ED) claiming on Friday that it had recently conducted searches at the premises of the directors of Zanmai Labs and
had issued an order to freeze his bank balance of Rs 64.67 crore.
According to the agency, WazirX had “actively” helped about 16 fintech companies – which are under investigation for money laundering – to divert suspected proceeds of crime using the cryptocurrency route.
ET reported July 6 that ED seeks information from multiple crypto exchanges under the Foreign Exchange Management Act (FEMA). The ED also accused the exchange of having a complicated ownership structure.
“Recent allegations regarding WazirX’s operations and how the platform was managed by Zanmai Labs were of ‘deep concern’ to Binance,” CZ said in a statement. He also tweeted that WazirX is not cooperating with Binance and it also appears not to be cooperating with ED.