The head of WazirX and the CEO of Binance are arguing about who owns the Indian exchange
A verbal altercation between Binance CEO Changpeng Zhao and WazirX founder Nishal Shetty over who owns the Indian crypto exchange began on Saturday when Zhao accused Shetty of "cheating."
After the Indian authorities froze WazirX funds in the amount of 647 million rupees ($8 million) on Friday and accused the crypto exchange of facilitating money laundering, Binance distanced itself from the Indian firm, despite the fact that it announced its acquisition back in 2019.
The two sides entered into a discussion over the weekend about a deal that everyone believed had been concluded many years ago. The contentious issue is who owns WazirX shares, who controls its day-to-day operations, and who has access to the WazirX web domain and the code stored in its Amazon Web Services (AWS) account.
"People are playing with deceptive language,- Zhao wrote on Twitter on Saturday. - We can close the domain. This only harms users. We have no control over the trading system. You just provided an AWS login, no source code, no deployment capability. You have also retained access to your AWS account, source code, deployment, etc."
Binance, the world's largest cryptocurrency exchange by trading volume, announced the purchase of WazirX on its blog in November 2019. The company amended this post on Friday to "clarify that the 2019 'acquisition' described in this blog was limited to an agreement to purchase certain assets and intellectual property of WazirX."
Binance stated that WazirX is still operated and operated by Zanmai Labs, an Indian organization owned by Shetty and others.
Shetty, for his part, said that Binance granted Zanmai a license to conduct WazirX transactions to exchange fiat currency for cryptocurrency, while Binance managed cryptocurrency trading with cryptocurrency.
Money laundering charges
Both Shetty and Zhao are distancing themselves from WazirX after the Indian Law Enforcement Agency (ED), a law enforcement agency that investigates financial crimes, froze some of the crypto exchange's funds and accused the company of money laundering related to Chinese credit applications that participated in digital lending in India.
WazirX said on Twitter that it disputes ED's accusations and is considering what steps to take next.
"We have fully cooperated with the Office of Enforcement (ED) for several days and have responded to all their requests fully and transparently," the Indian crypto exchange said in a statement.
Meanwhile, Zhao warned clients of the Indian crypto exchange that Binance has the ability to disable WazirX wallets. But he said he didn't want to do it because it would hurt users. However, he advised them to transfer funds to Binance.
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