Binance Denies Owning WazirX Amid ED Investigation, Indian Crypto Exchange Accountants

Chang Peng ZhaoCEO of crypto exchange Binanceclaimed in a Twitter thread on Friday that the company does not own shares in the Indian crypto exchange WazirX.

He further stated, “Binance published a blog post that it had ‘acquired’ WazirX. This transaction was never completed. Binance has never, at any time, owned any shares of Zanmai Labs, the entity that operates WazirX.”

Furthermore, Changpeng Zhao explained that Binance only provides wallet services to WazirX as a technology solution. He claimed that WazirX was solely responsible for all other aspects of their exchange, including Trade KYC and withdrawals.

However, in response to the tweet, nischal shettyWazirX founder and CEO responded by saying that Binance acquired WazirX, and zanmai labs had the license from Binance to trade INR-crypto pairs on WazirX.

Looking back in 2019, Binance announced the acquisition of WazirX in a blog post, stating that users as of November 25, 2019 could buy and sell crypto with Indian rupees (INR) on Binance Fiat Gateway. The blog post also included images of the founders of Zhao and WazirX.

In the same blog post, the former CFO of Binance weizhou he said: “Bridging fiat-to-crypto remains a key mission for Binance, and WazirX will help this by providing a simple and cohesive way to buy cryptocurrency in a country that is home to more than a billion people.”

Later on November 21, 2019, the Indian cryptocurrency exchange stated in a separate blog post, “WazirX has now become the first Indian cryptocurrency exchange to be acquired by an international cryptocurrency exchange.”

However, there were no clarifications given by the exchange thereafter.

Crypto Entrepreneur and CEO of Coin Crunch India Naimish Sanghvi took to Twitter to express that even though no transaction took place between Binance and WazirX to acquire the latter, no clarification was provided in this regard.

In the Twitter thread, Zhao also said that Binance has collaborated with law enforcement agencies around the world. “We would love to work with ED in any way possible,” she added.

Zhao’s statement comes at a time when, earlier today, the Enforcement Directorate (ED) announced that it froze bank deposits worth Rs 64.67 crore as part of a money laundering investigation against WazirX.

On his official Twitter account, ED revealed that he had searched the premises of one of the directors of Zanmai Labs Private Limited, which operates WazirX.

The company is alleged to have been laundering fraudulent money through the purchase and transfer of virtual crypto assets.

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