Transactions between Binance and the India-based Bitcoin exchange WazirX, which it acquired in 2019, have been disabled. Users can no longer transfer cryptocurrencies from Binance to WazirX. Nischal Shetty, co-founder of Binance CZ and WazirX, speaks on Twitter.
Transfers from Binance to WazirX suspended
Transfers from Binance to WazirX are currently not possible. Binance and WazirX founders continue to openly argue about control of the Indian stock market. Meanwhile, CZ made a big move. A blockchain investor named Akuma shared this Binance development with over a hundred thousand followers on Twitter:
I noticed that Binance has disabled the option to transfer funds from Binance to WazirX. However, we can still easily transfer funds from Wazirx to Binance.
Just noticed #binance has disabled option to transfer funds from Binance to wazirx.
However we could still easily transfer funds from wazirx to binance.
I think this does hurt users @cz_binance @NischalShetty pic.twitter.com/buu5VvagfB
— Akuma (@akumatweets66) August 6, 2022
What awaits Bitcoin investors?
Binance CEO CZ has previously said that his company may close the WazirX space but will not. In addition, CZ asked WazirX users to transfer their balances to Binance. But WazirX, on the other hand, has begun to charge such transfers. A few WazirX users, who learned that Binance is suspending transfers, expressed disappointment with this move.
Fund security issues
Concerns over user funds further complicate the situation. This is because CZ has already issued a warning of excessive action. However, he said that Binance will not shut down the troubled crypto exchange as the action could harm users. In this context, WazirX users turn to various social platforms to voice their concerns.
Most users worry about their funds security amid open discussion between founders. This also leads to second thoughts about whether to continue storing balances in WazirX. Some users suggest that it would be better to switch to Binance despite the fee. However, WazirX CEO Nischal Shetty stated that all cryptocurrencies on the platform are “safe for now.”
Bitcoin exchange under the spotlight
On Friday, Indian law enforcement raided WazirX’s facility for allegedly helping some companies with money laundering. The country’s Enforcement Directorate said the exchange helps instant loan enforcement companies with counterfeit money laundering. Authorities froze WazirX’s bank assets holding over 64.67 crore. This means approximately $ 8.13 million. Following this, open discussions broke out on Twitter, with the Binance CEO claiming that his company does not own any stake in WazirX. As a result, there has been widespread confusion about who owns WazirX.
ED searches the Director of WazirX Crypto-Currency Exchange & freezes its bank assets worth Rs 64.67 Crores for assisting accused Instant Loan APP Companies in the laundering of fraud money via purchase & transfer of virtual crypto assets
— ANI (@ANI) August 5, 2022
On the other hand, hours after India’s Executive Directorate (ED) review on WazirX, Binance CEO CZ has responded to his relationship with WazirX. CZ addressed the news that Binance acquired WazirX in 2019. The CEO says in his tweet that, contrary to circulating reports, Binance has never owned WazirX.
Quick thread on Binance and WazirX, and some incorrect reporting.
Binance does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.
1/4
— CZ 🔶 BNB (@cz_binance) August 5, 2022
CZ also clarified that acquisition attempts were made but the deal never materialized. Binance said in a tweet Friday that it does not own any stake in WazirX’s parent company. CZ says the deal talks, details of which emerged in November 2019, were not successful. As reported by Kriptokoin.com, Binance announced its plans to acquire WazirX in November 2019. However, according to CZ, the partnership did not conclude.
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