The ongoing feud between Binance, the world’s leading cryptocurrency exchange, and Zanmai-managed WazirX Indian crypto platform persists with a recent blog post claiming that Binance has forbidden WazirX from using its services. This marks another chapter in the long-waged battle between these two major players.
The Situation Escalated Between Binance and WazirX’s Parent Company, Zanmai
On February 3, Binance issued a declaration regarding its ongoing “public dispute” with Zanmai. On January 26th, Binance offered WazirX an ultimatum: retract their accusations against them or cease using the company’s wallet services. WazirX opted for the latter and decided to continue using Binance wallet services despite the assertions they made priorly.
As per the notification, Zanmai has refused to revoke its stance and must withdraw all funds from WazirX-related accounts before February 3rd, 2023, at 11:59 PM UTC.
Less than four weeks ago, WazirX revealed that 90% of its customers’ funds are stored in wallets linked to Binance, and the remaining 10% is held in cold storage. Now, at the time this article was written, it has come to light that Binance also houses Zanmai’s assets for operational purposes.
WazirX Was Under Investigation By Indian Authorities
Over the past year, WazirX – India’s largest cryptocurrency exchange – has been facing difficulty from local authorities. In fact, these same Indian authorities charged them with assisting in laundering over $130 million of unlawful money! This is a testament to how powerful and influential this platform has become within such a short period of time.
Amidst the inquiry, WazirX had millions of dollars in user funds frozen. At this juncture, Binance began to publicly distance itself from the Indian exchange via a tweet by CEO Changpeng Zhao that asserted that Binance has no control over it. In solidarity with the Indian authorities investigating WazirX, Binance swiftly disabled off-chain financial transactions once their statement was released.
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