Crypto Exchange Binance Ceases Off-Chain Fund Transfer With WazirX After ED Raids

New Delhi, Aug 8: The world's largest crypto exchange Binance, that disowned the Nischal Shetty-run crypto platform WazirX, on Monday said that it is removing the off-chain fund transfer channel between WazirX and Binance.

The crypto platform will cease to support off-chain fund transfers between WazirX Exchange and Binance via the "Login with Binance" option, Patrick Hillmann, Chief Communications Officer, Binance, said in a statement. Cryptocurrency Firm Binance Says It Doesn’t Own India’s WazirX After ED Raids

"Users will still be able to deposit and withdraw balances via the standard withdrawal and deposit process between Binance and WazirX," he said.

Last week, after the Enforcement Directorate (ED) raids on WazirX's parent company Zanmai Lab, Changpeng Zhao, Founder and CEO of Binance, had said that the company does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.

The ED searched the director of WazirX cryptocurrency and froze its bank assets worth Rs 64.67 crore "for assisting accused instant loan App companies in laundering of fraud money via purchase and transfer of virtual crypto assets".

Hillmann said that as a result of the recent regulatory action taken against Zanmai Labs, "in relation to their operations of the WazirX Exchange, it has come to our attention that some users were given to believe that funds deposited in WazirX were managed by Binance. This is not the case".

Moving forward, Binance will support Indian regulators in the ongoing matters concerning WazirX.

"Binance believes in keeping an open dialogue with regulators, policymakers and the law enforcement community as we collectively seek to establish a global regulatory framework for the industry," said Hillmann.

WazirX is the largest crypto exchange in India and its annual trading volume exceeded $43 billion in 2021.

Shetty, co-founder of WazirX, disputed Binance's claims in a series of tweets last week.

"More facts about WazirX: Binance owns WazirX domain name, Binance has root access to AWS servers, Binance has all the Crypto assets, Binance has all the Crypto profits. Don't confuse Zanmai and WazirX", he had tweeted.

On November 21, 2019, Binance said it had "acquired" WazirX.

"This transaction was never completed. Binance has never - at any point - owned any shares of Zanmai Labs, the entity operating WazirX," according to Zhao.

(The above story first appeared on LatestLY on Aug 08, 2022 08:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).