New Delhi, Aug 9: Stressing that Changpeng Zhao-run Binance is co-operating Nischal Shetty-run crypto platform WazirX, its parent company Zanmai Labs said on Tuesday that it has fully cooperated with the Enforcement Directorate (ED) after it raided its premises and froze bank assets worth Rs 64.67 crore.

Amid the controversy over Binance and its association with WazirX that has over 15 million users on its platform, Zanmai Lab said in a statement that "WazirX is a platform co-operated by Zanmai Labs Pvt. Ltd. (Zanmai Labs) and Binance". Crypto Exchange Binance Ceases Off-Chain Fund Transfer With WazirX After ED Raids

"We have fully cooperated with the ED for several days and have responded to all their queries fully and transparently. ED appears to be investigating the transactions of certain users and Zanmai Labs has no affiliation to such users and is unaware about the purpose of their transactions," said the company.

After the ED raids on Zanmai Labs, Binance first disowned WazirX, and then said that it is removing the off-chain fund transfer channel between WazirX and Binance.

Zanmai Labs said that there seems to be a major misunderstanding about off-chain transactions between WazirX and Binance.

"Off-chain transactions between WazirX and Binance can only be done by a user between his/her/its own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well (and have been submitted to the ED when requested)," it argued.

Off-chain withdrawals also cannot happen if the accounts are not KYCed, the company added.

"Law Enforcement Agencies (LEAs) can get complete information about the accounts involved in off-chain transfers. Zanmai Labs has always cooperated completely with LEAs and provided full and complete information and shall continue to do so," it said.

On Monday, Binance 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".

"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 the company.

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

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

(The above story first appeared on LatestLY on Aug 09, 2022 09:28 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).