Binance instructs users to withdraw all funds from their WazirX wallets
- ByStartupStory | February 4, 2023
Binance will cease providing WazirX with its wallet and other technical services, increasing hostilities with the Indian cryptocurrency exchange it originally hoped to purchase.
The biggest cryptocurrency exchange in the world issued a warning on Friday, noting that despite being informed of the modified conditions, Zanmai, the company that runs the WazirX exchange, has not completely removed funds held in Binance wallets.
According to Binance, Zanmai’s reluctance to retract inaccurate statements regarding its relationship with the larger business is what caused the situation to escalate.
“On 26 January 2023, we offered Zanmai a choice between retracting the false public statements (and continuing to use our services) or terminating the use of our wallet service. Since Zanmai has refused to clarify their misleading statements, Zanmai has till 3 February 2023 (23:59 UTC) to remove the funds from the accounts that they used for WazirX’s operations,” Binance wrote in a blog post.
When it announced that it doesn’t control the India-based platform WazirX despite the two having disclosed an acquisition years earlier, Binance shocked many in the cryptocurrency sector in August of last year.
The business had been “trying to conclude the deal for the past few years,” said Changpeng Zhao, founder and CEO of Binance, at the time, but hadn’t yet completed the transaction due to “a few issues,” on which he declined to explain.
WazirX and its leaders allege that Binance has bought the company.
According to Binance, their partnership with WazirX is normal and confined to tech services. Similar agreements exist between Binance and “many other organisations,” who utilise Binance’s infrastructure and technologies but operate their operations independently.
“The false and misleading narrative put forth to the public misrepresented Binance as maintaining control over WazirX users’ assets, user activity, and the platform’s operations,” Binance said Friday. “The reality, as we said time and time again, is that Binance provided Zanmai wallet services only as a tech solution for their operations of the WazirX exchange. Binance has never managed or controlled WazirX’s operations, including in relation to users’ assets and user activity.”
Binance stated that Zanmai has been “invited” as an exception to work out plans with the company to remove any leftover funds after February 3; nevertheless, the decision as to whether such plans will be implemented “ultimately lies with the Zanmai team.”
A WazirX spokesman stated in a statement issued late Friday that the company has started the process of moving funds to multi-sig wallets and anticipates finishing it in the coming hours. Users may go on trading, making deposits, and taking withdrawals as normal. With us, your money is secure, the representative continued.
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