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Who owns WazirX? What did Binance CEO say? Claims, counterclaims fly as controversy hits crypto platform

DNA logo DNA 06-08-2022 (DNA Web Desk)
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WazirX is engulfed in huge controversy. Following raids by the Enforcement Directorate on its parent company Zanmai Lab, a row has kicked off over the ownership of the largest India-based cryptocurrency exchange which had an annual trading volume of over $43 billion in 2021.

The matter was fuelled by the largest crypto exchange in the world, Binance disowning the WazirX. It followed counterclaims by WazirX CEO Nischal Shetty and the dispute continues on Twitter.

It started with Binance founder and CEO, Changpeng Zhao saying that the company "does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders", in a Twitter thread. 

"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," he said. Stating that Binance only provides a tech solution for the crypto platform in the name of wallet services, he said that all other aspects including user sign-up, KYC, trading and initiating withdrawals is the responsibility of WazirX. 

His claim was disputed by WazirX CEO who wrote on the social media platform, “More facts about WazirX: Binance owns WazirX domain name, Binance has root access to AWS servers, Binance has all the Crypto assets, Binance has all the Crypto profits. Don`t confuse Zanmai and WazirX.”

Why did ED raid WazirX?

The ownership row followed ED raids on the director of WazirX on Friday where bank assets worth Rs 64.67 crore were frozen by the agency "for assisting accused instant loan App companies in laundering of fraud money via purchase and transfer of virtual crypto assets”.

READ | RBI increases repo rate: How much will your EMIs increase on Rs 30 lakh home loan?

(With inputs from IANS)

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