The connection between Binance and WazirX is now in question as India’s ED has frozen the money of cryptocurrency exchange WazirX. It was celebrated in 2019 as the first acquisition in the Indian crypto market.
Fact: we asked for transferring of WazirX system source code, deployment, operations, as recently as Feb this year. This was refused by WazirX. Binance do NOT have control on their systems.
WazirX has been uncooperative with us, and looks like uncooperative with ED as well.
— CZ 🔶 Binance (@cz_binance) August 6, 2022
The 2019 acquisition announcement
WazirX accused of involvement in money laundering
ED has accused WazirX of assisting 16 Indian fintech firms, already under investigation by the agency, in laundering proceeds of crime by transferring the money to unknown foreign wallets
(By @Abhinavkaul) https://t.co/TPIVhT5eam
— Mint (@livemint) August 8, 2022
During the investigation, it was discovered that WazirX’s director, Sameer Mhatre, has complete remote access to the company’s database. He is not providing details of transactions related to crypto assets bought with the proceeds of Instant Loan App fraud, according to the ED.
Dispute over ownership between WazirX and Binance CEOs
It hurts users.
Binance does NOT have control on operations including "user sign-up, KYC, trading and initiating withdrawals", as stated earlier. WazirX's founding team controls that. This was never transferred, despite our requests. The deal was never closed. No share xfers.
— CZ 🔶 Binance (@cz_binance) August 5, 2022
1/ Deal involved Binance Parent entity
After some media reports on Binance structure, we asked about it
We were given an ambiguous answer that parent entity is under restructuring
It’s been many months, still waiting for Binance Parent entity
Can Binance name Parent entity? https://t.co/5oehKqaTxp
— Nischal (Shardeum) ⚡️ (@NischalShetty) August 6, 2022
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