Binance Ends Wallet Services to WazirX, Asks Exchange to Withdraw Assets

• Binance has stopped providing wallet services to WazirX and asked them to withdraw any remaining assets held in their wallets.
• This decision was taken due to misleading statements made by Zanmai Labs, the entity operating the Indian crypto exchange.
• Binance also reiterated that it has no control over WazirX, rather it only provides a wallet and related technology services.

Binance Terminates Wallet Services to WazirX

Binance, the world’s largest cryptocurrency exchange, has stopped providing wallet services to WazirX and asked them to withdraw any remaining assets held in Binance wallets.

Misleading Statements by Zanmai Labs

The decision was taken due to misleading statements made by Zanmai Labs, the entity operating the Indian crypto exchange, regarding the nature of their relationship. Binance stated that they had offered Zanmai a choice between retracting false public statements or ending the collaboration; however, they had not received a satisfactory response from Zanmai and thus are terminating their partnership.

Withdrawal of Assets

Zanmai has been given till February 3rd 2023 (23:59 UTC) to remove funds from accounts used for WazirX’s operations. As an exception, Binance has invited Zanmai to work out arrangements with them to withdraw any remaining assets in relevant accounts after February 3rd; however, responsibility ultimately lies with the Zanmai team to make these withdrawals expeditiously.

Investigation into Exchange Violations

Last year India’s Directorate of Enforcement (ED) opened an investigation into WazirX due to suspected violations of foreign exchange laws; freezing over $8 million of the exchange’s funds during this probe. Following this investigation CZ revealed its relationship with Indian crypto exchange; stating that Binance does not own any equity in Zanmai Labs and that transaction for acquiring WazirX was never completed. ED also said that Zanmain had obscured ownership of crypto platform through web of agreements and failed to give crypto transactions of suspect fintech APP companies and reveal KYC of wallets.

No Control Over WazirX

In recent announcement again reiterated that it “has no control over WazirX,” rather it only provides a wallet and related technology services.