The divorce between global cryptocurrency exchange Binance and Zanmai, the operator behind Indian cryptocurrency exchange WazirX, continues in a new Binance blog post banning the latter from using its services.
On February 3, Binance published a post acknowledging the ongoing “public debate” with Zanmai over its claims of Binance’s involvement in the operation of WazirX. Binance said that on January 26 it gave WazirX an ultimatum to retract its statements and continue to use Binance wallet services or it would end up being banned from the platform.
According to the announcement, Zanmai did not retract and now has until February 3, 2023 23:59 UTC to withdraw all of its funds from the accounts used for WazirX transactions.
Binance clarified that as of press time, Zanmai has funds that still remain in their wallets used for operational purposes.
This comes less than a month after WazirX will reveal that it keeps 90% of its users’ funds in Binance wallets, while the remaining 10% is in cold storage wallets.
This announcement followed the publication of a series of proofs of reserves by cryptocurrency exchanges in the wake of the FTX scandal.
WazirX is the largest cryptocurrency exchange in India. However, in the last year he has had problems with the local authorities. Indian authorities accused the exchange of helping to launder some $130 million worth of money.
At the time of the investigation, millions of user funds were frozen on the exchange. It was then that Binance began to publicly distance itself from the Indian exchange, which materialized in a tweet from the CEO of Binance, Changpeng Zhao, in which he clarified that Binance does not own WazirX.
Shortly after this statement, Binance began collaborating with local Indian authorities in the investigation against WazirX and eliminated off-chain fund transfers with the exchange.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.