Binance, the world’s largest cryptocurrency exchange by trading volume, said Friday that it does not own India-based platform WazirX, despite disclosing the acquisition two and a half years ago. A purchase has been made.
Binance Founder and CEO Zhao Changpeng said: series of tweets The company said it “has been trying to close a deal for the past few years” but has yet to complete a deal, citing “several issues.”
Binance announced the acquisition of WazirX in late 2019. blog postAn official blog post with a photo of Zhao and WazirX founders also noted that Binance executives were enthusiastic about the deal.
“The acquisition of WazirX demonstrates our commitment and dedication to the people of India and takes another step towards strengthening India’s blockchain ecosystem and achieving money freedom,” a 2019 post said. I quoted the statement of
WazirX also said, “Successfully acquired by Binance” in another blog post.
Zhao said on Friday that Binance “does not own any stake in Zanmai Labs,” the organization that runs WazirX and was founded by its original founders.
“On November 21, 2019, Binance published a blog post stating that it had “acquired” WazirX. This transaction did not complete. Binance has never owned shares in Zanmai Labs, the organization that operates WazirX, at any time,” he wrote.
“Binance only provides wallet services to WazirX as a technical solution. There is also integration with off-chain tx to save network fees. , WazirX is responsible for all other aspects of the exchange,” he added.
The clarification follows India’s law enforcement agency freezing WazirX’s assets worth more than $8 million, citing alleged foreign exchange rule violations.
“Recent allegations regarding the operation of WazirX and how Zanmai Labs has controlled the platform are of serious concern to Binance. Binance is working with law enforcement agencies around the world. We are,” Zhao added.
India’s anti-money laundering agency said in a Friday order that Binance rarely responds to queries sent to its official legal compliance email address.
WazirX is India’s largest cryptocurrency exchange by trading volume. Annual trading volume for 2021, he said, will exceed $43 billion, a “1,735% growth from 2020,” the company said late last year. The platform also offers its technology to several other Indian exchanges.
WazirX co-founder Nischal Shetty disputed Zhao’s claims, claiming that Binance actually acquired WazirX. In a series of tweets, he said:
The public dispute over ownership took an even stranger turn on Saturday. In a tweet, Zhao claimed that Binance had asked WazirX to transfer the system’s source code, deployment, and operations back in February of this year, but WazirX refused. . “Binance has no control over their system. WazirX seems uncooperative to us and uncooperative to ED,” he added.
Since then, Shetty has doubled down on his claim that Binance owns WazirX, which Zhao calls a “deception”.
The story has been completely updated with additional details.