WazirX founder Nishal Shetty said on Saturday that the deal his company entered into relates to Binance’s parent entity.
“Following some media reports about Binance’s architecture, we asked about it,” Shetty wrote in a tweet. We received a vague answer that the parent entity is undergoing restructuring. It’s been months, and I’m still waiting for the main entity on Binance… Can Binance name the main entity? ”
1/ A deal involving a major entity Binance After some media reports about the structure of Binance, we asked about it… https://t.co/2DmPcCnt7v
– Nischal (Shardeum) ⚡️ (@NischalShetty) 1659791215000
He added that the deal included the sale of WazirX technology. The same technology was then licensed to Zanmai by Binance for the INR market. Subsequent license: Binance operates cryptocurrency trading and cryptocurrency deposit/withdrawal. Shetty wrote on Saturday that Zanmai operates INR-Crypto trading, and INR deposit/withdrawal.
2/ The original deal involved the sale of WazirX Technology (IP), then the same technology was licensed to Zanmai by Binance fo… https://t.co/gAwyZHOz3N
– Nischal (Shardeum) ⚡️ (@NischalShetty) 1659791217000
Zanmai Labs is the Indian entity that operates WazirX. In the Indian entity, Shetty owns 0.01%, and 99.99% is owned by Singapore-registered Zettai Pte Ltd, according to company filings. A source said Zetai’s ownership is divided between Shetty co-founder Siddharth Menon and Sameer Mahatri.
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Zhao said that WazirX users should transfer their funds to Binance. “We can disable WazirX wallets on a technical level, but we can’t/we won’t,” he tweeted. “And as much as we tolerate it, we cannot/will not harm users.”
If you have money on WazirX, you must transfer it to Binance. As simple as that we can disable WazirX wallets at… https://t.co/8mNGG1XqUQ
– CZ 🔶 Binance (cz_binance) 1659734907000
Zhao also tweeted that Binance could shut down WazirX if it wanted to.
WazirX had over 10 million registered users as of February.
“The founding team of WazirX maintained control of the platform’s operations,” Zhao wrote. “We (Binance) are not given data or control over users, KYC, etc. We would like to work with ED to fix these issues with WazirX.”
The WazirX founding team maintained control of the platform’s operations. We (Binance) have never given data or… https://t.co/1yw5Fqm09o
– CZ 🔶 Binance (cz_binance) 1659734011000
The strained relationship between WazirX and Binance comes on the back of the Execution Department (ED) saying on Friday that it had recently conducted searches at the headquarters of Zanmai Labs principals and issued an order to freeze its bank balance of Rs. 64.67 crore Rs.
According to the agency, WazirX has “actively” helped about 16 fintech companies – which are under investigation for money laundering – to transfer alleged proceeds of crime using the cryptocurrency route. ET reported on July 6 that ED is seeking information from multiple crypto exchanges under the Foreign Exchange Management Act (Fema). WazirX CEO has also been accused of having a complex ownership structure.