Binance Stops Wallet Services for WazirX – Dispute Over Ownership
• Binance has stopped its wallet services for WazirX, an Indian cryptocurrency platform. This decision was made following a public argument over ownership of the exchange.
• Binance set a deadline of Feb. 3rd, 2023 at 11:59 UTC for Zanmai Labs to retrieve the funds utilized for WazirX’s operations.
• WazirX recently revealed in a proof of reserves report that 90% of its user assets are stored in Binance wallets.
Binance Stops Wallet Services for WazirX
Binance, the biggest crypto exchange globally, has discontinued its wallet support for WazirX, an Indian cryptocurrency platform, due to false claims made by Zanmai Labs which manages WazirX. In a recent blog post, Binance mentioned that it had given Zanmai Labs an opportunity to withdraw its untrue statements or end the partnership but since no satisfactory reply was received, it was forced to end the association and set a deadline of Feb. 3rd, 2023 at 11:59 UTC for Zanmai Labs to retrieve the funds utilized for WazirX’s operations.
False Claims Made by Zanmai Labs
The public argument between Binance and WazirX started when Indian authorities began investigating into the exchange’s operations due to alleged violations of foreign exchange regulations on Twitter between co-founder Nischal Shetty and CEO Changpeng Zhao regarding who holds authority over WazirX. The dispute ignited after CoinGabbar released a proof of reserves report showing that 90% of user assets are stored in Binance wallets with total user asset value being $285 million represented by stablecoin USDT tied to US dollar value.
Binance Does Not Own Wazirx
Despite announcements pointing otherwise back in 2019 saying otherwise about ownership, Binance emphasized that it does not own WazirX and only provides wallet and tech services to them as clarified in their recent statement.
Deadline Set By Biance
Biance has set a deadline of Feb 3rd 2023 at 11:59 UTCfor Zanimi labs to retrieve funds used in operation yet still clarifying that final responsibility lies on Zanimi labs itself to carry out these withdrawals despite their intentions stated publicly.
Proof Of Reserves Report
As per CoinGabbar’s proof f reserve report ,90%of user assets were held by binance wallets with other exchanges holding only 26 million dollars worth assets while total user asset value being 285 million dollars represented by stable coin USDT tied up with US dollar value .