coinedition.com
The largest crypto marketplace Binance has asked the Indian rival exchange WazirX, run by Zanmai, to withdraw its leftover assets and stop using the Binance wallet service.
Binance communicated this decision today via its official website, noting that Zanmai has refused to retract its past false public statements against Binance. On January 26, Binance offered Zanmai a choice between recanting its libelous statement and continue using the Binance services or terminating its business relationship.
However, it appears the WazirX team preferred to cut its business deals with Binance. Therefore, the exchange noted in the press release that Zanmai has until the close of Friday, February 3, 2023, to remove the funds from the accounts it used for WazirX’s operations.
Binance reiterated that it has no control over Zanmai’s management of WazirX user funds. The Zanmai team has informed Binance of its intention to withdraw the assets from the relevant accounts.
In November 2019, Binance, in a blog post, announced the acquisition of WazirX. However, in August 2022, after India’s Enforcement Directorate (ED) raided the properties of WazirX for fraud-related concerns, Binance updated the earlier acquisition announcement.
Binance clarified that the acquisition was limited to an agreement to purchase certain assets and intellectual property of WazirX and that it did not own any equity in Zanmai Labs, the entity operating WazirX.
What followed was months of public back-and-forth between WazirX and Binance over the actual ownership of the Indian exchange. The Indian law enforcement alleged that WazirX had helped 16 fintech companies in laundering the proceeds of crime using the crypto route.