Binance-WazirX Acquisition Was Never “Complete”: Binance’s CEO Changpeng Zhao
- Binance CEO CZ has made a surprising Twitter announcement, stating that the WazirX-Binance transaction was never complete.
- CZ further added that Binance does not own any equity in Zanmai Labs, the entity that operates WazirX
Binance’s CEO Changpeng Zhao has made surprising declarations regarding the Indian crypto exchange WazirX.
While several media houses have been referring to WazirX as an entity owned by Binance, CZ has issued clarification via Twitter on how the Binance-WazirX transaction never went through citing “issues that cannot be easily disclosed.”
Earlier today, Indian crypto exchange WazirX bank accounts were raided by the Enforcement Directorate of India for alleged violation of the Foreign Exchange Management Act.
Binance Does Not Own Any Shares In Zanmai Labs, The Entity That Owns WazirX: CZ
The recent WazirX frozen fund controversy has compelled Binance’s CEO to issue certain clarifications.
In a comprehensive Twitter thread, Binance’s CEO cleared the air concerning multiple media houses that have been referring to Indian crypto exchange WazirX as an entity acquired and owned by Binance.
Zhao further contended that Binance does not own any equity in Zanmai Labs, whom he referred to as the real owner and operator of WazirX.
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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He further confessed how the exchange had earlier published a blog on its website announcing that it had acquired WazirX. Disregarding the contents of the blog later on, CZ declared how the Binance-WazirX transaction never went through or in simpler terms, was never completed in the long run.
In addition to this, Zhao also clarified that Binance does not own any shares of Zanmai Labs, the firm that operates WazirX independently.
2/ On 21 Nov 2019, Binance published a blog post that it had “acquired” WazirX. This transaction was never completed. Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX.
Earlier today, WazirX crypto exchange was raided by ED authorities in India who had allegedly accused the firm of violating the Foreign Exchange Management Act.
The ED authorized personnel had reportedly searched the premises of Zanmai Labs, a company that operates WazirX as stated by CZ. Per the recent reports, nearly $8 million worth of WazirX funds were frozen by Indian authorities.
As far as the Binance-WazirX relationship is concerned, Zhao outlined how Binance had provided limited crypto services to WazirX in the form of wallet services as a tech solution.
3/ Binance only provides wallet services for WazirX as a tech solution. There is also integration using off-chain tx, to save on network fees. WazirX is responsible all other aspects of the WazirX exchange, including user sign-up, KYC, trading and initiating withdrawals.
In response to the question of why Binance did not go through with the WazirX acquisition, Zhao replied that the acquisition was met with a few ” issues which are not easy to disclose.”
We have been trying to conclude the deal for the past few years, but it hasn’t. “a few” issues. Not easy to disclose.
The crypto revelation made by CZ today came as a surprise to several crypto enthusiasts, who had previously considered WazirX as an entity owned and managed exclusively by Binance.
Several users were left perplexed with the news, since there have been instances where CZ had shared tweets that referred to WazirX being owned by Binance.
» Binance-owned Indian crypto exchange WazirX crosses $200m in daily trading volume; eyes $1b in 2021 – The Financial Express https://t.co/t3GD7UwvYt
Numerous Twitter users expressed their skepticism in response to the news, adding that CZ should explain why a misleading blog declaring the Binance-WazirX acquisition was issued in the first place when the transaction was never confirmed.
A blog post saying Binance has aquired wazirX should be posted after the transactions are complete, not before. Or the blog post should say Binance is planning to aquire wazirX. This is complete misleading of your users who invested in wazirX
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