CZ And Nischal Shetty Are Arguing: Does Binance own WazirX?

CZ and Nischal Shetty are arguing on Twitter whether the purchase of WazirX by Binance was finalized and whether Binance now owns the aforementioned company.

Changpeng Zhao, the founder of Binance, has denied that his business has any stock in Zanmai Labs, the entity that created the WazirX cryptocurrency exchange in India.

Quick thread on Binance and WazirX, and some incorrect reporting.

Binance does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.

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— CZ 🔶 Binance (@cz_binance) August 5, 2022

The information came to light after the Indian Enforcement Directorate decided to block a WazirX account due to suspicions of money laundering.

Zhao said in the Aug. 5 Twitter thread that contrary to what was stated in a blog post that was published on Nov. 21, 2019, Binance did not finalize the acquisition of WazirX. TZ stated:

“Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX.”

He added that WazirX and an integration that leverages off-chain transactions to reduce network fees are the only applications to which Binance offers wallet services. CZ affirmed that:

“WazirX is responsible (for) all other aspects of the WazirX exchange, including user sign-up, KYC, trading, and initiating withdrawals.”

Zhao also said that Binance does not share the concerns raised by the most recent charges regarding WazirX’s business practices because Binance works with law enforcement agencies all around the world.

WazirX has allegedly been uncooperative with Binance, according to CZ. He claimed that Binance had just made a request to transmit the WazirX system source code but was turned down.

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

As he “could shut WazirX wallets on a tech level, but we can’t/won’t do that” to not harm the users, Zhao recommended WazirX users to transfer their cash to his exchange.

The creator of WazirX claims Binance purchased the exchange.

Nischal Shetty, the creator of WazirX, has insisted that Binance really did acquire the exchange.

1/ FACTS about WazirX & Binance:

WazirX was acquired by Binance

Zanmai Labs is an India entity owned by me & my co-founders

Zanmai Labs has license frm Binance to operate INR-Crypto pairs in WazirX

Binance operates crypto to crypto pairs, processes crypto withdrawal…

— Nischal (Shardeum) ⚡️ (@NischalShetty) August 5, 2022

Shetty continued by stating that he and his other co-founders are the owners of Zanmai Labs.

He said this:

“Zanmai Labs has a license from Binance to operate INR-Crypto pairs in WazirX, but Binance operates crypto to crypto pairs, processes crypto withdrawals.”

He also said that Zanmai and WazirX are separate companies and that Binance owns the domain name for WazirX and has access to all of the exchange’s crypto assets as well as all of the revenues generated by those assets.

The user agreement for WazirX revealed that Binance provided services for the Indian-based exchange connected to cryptocurrencies.

Even if CZ and Nischal  Shetty are arguing over the owner structure of WazirX, we should wait for the proper authorities, which will definitely have the final say, and no amount of arguing between these two will change that.

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