Coin News

Binance’s CZ clarifies position after ‘incorrect reports’ on WazirX ‘acquisition’

6 Aug, 20222 min readOther
Binance’s CZ clarifies position after ‘incorrect reports’ on WazirX ‘acquisition’

Binance CEO Changpeng Zhao has claimed that the company “does not own any equity” in Zanmai Labs, the parent company of Indian crypto-exchange WazirX. This, a day after India’s Enforcement Directorate (ED) froze WazirX’s bank balances worth $8 million earlier.

According to a statement, ED has been investigating WazirX since last year for its alleged role in a money laundering scheme. On 5 August, ED conducted searches on WazirX Co-founder and CTO Sameer Mhatre after suspicions emerged about links to Chinese loans apps.

Floodgates are wide open

Binance has been called into question since the legal probe began after CZ denied the acquisition of WazirX. In fact, CZ claimed on Twitter that the acquisition of WazirX “was never completed.”

Worth pointing out, however, that this acquisition was announced way back in November 2019. A later tweet from CZ confirmed the purchase, with the exec distinctly stating “Binance-owned Indian crypto exchange WazirX…”

» Binance-owned Indian crypto exchange WazirX crosses $200m in daily trading volume; eyes $1b in 2021 – The Financial Express — CZ 🔶 Binance (@cz_binance) April 5, 2021

On the contrary, his latest four-part post denied this, with CZ arguing that Binance is a target of “incorrect reporting.”

“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,” said Changpeng Zhao.

On the other hand, WazirX founder Nischal Shetty has refuted CZ’s claims in his own posts on Twitter. Shetty alleged,

“1/ FACTS about WazirX & Binance: WazirX was acquired by Binance Zanmai Labs is an India entity owned by me & my co-founders Zanmai Labs has license frm Binance to operate INR-Crypto pairs in WazirX Binance operates crypto to crypto pairs, processes crypto withdrawal…”

Not the first legal battle

Binance is no stranger to legal battles as it has been accused of legal wrongdoing multiple times. As per Bloomberg, investigations into Binance have broadened to look at potential insider trading and market manipulation.

In fact, a Philippines-based think tank claimed that Binance is a “risk to the public” earlier in July. A new lawsuit has been filed against the organization for allegedly misrepresenting TerraUSD, a stablecoin. Earlier in July, developer “CryptoFelon” claimed that Binance CEO Changpeng Zhao is attempting to “rob him of his domain.”


Subscribe to get our top stories

Coin News
App StoreApp Store