• Binance has stopped its wallet services for WazirX due to a disagreement over ownership of the Indian exchange.
• Binance has set a deadline of February 3rd, 2023 at 11:59 UTC for Zanmai Labs to retrieve the funds used for WazirX’s operations.
• A recent proof-of-reserves report shows that 90% of WazirX’s user assets are stored in Binance wallets.
Binance Stops Wallet Services for WazirX
Binance, the world’s largest cryptocurrency exchange, has stopped its wallet services for WazirX, an Indian cryptocurrency platform, due to false claims made by Zanmai Labs, which manages WazirX. The exchange gave Zanmai Labs an opportunity to withdraw its untrue statements or end the partnership but did not receive a satisfactory reply and was forced to end the association. They have set a deadline of February 3rd, 2023 at 11:59 UTC for Zanmai Labs to retrieve the funds utilized for WazirX’s operations.
Dispute Over Ownership of Exchange
The disagreement between Binance and WazirX started when Indian authorities began looking into their operations on alleged violations of foreign exchange regulations. This led to an argument between Nischal Shetty (co-founder of WazirX) and Changpeng Zhao (CEO of Binance), regarding who holds authority over the company.
Proof Of Reserves Report
A proof-of-reserves report released by CoinGabbar revealed that 90% of user assets are stored in Binance wallets with total user asset value being $285 million USDT tied to U.S dollar value. Out of this amount, 92% is held in Binance wallets while other exchanges only hold $26.45 million worth user assets.
Binance Does Not Own Wazirx
In its latest announcement, Binance stated emphatically that it does not own or control any part of Wazirx despite announcements pointing towards otherwise back in 2019 and only provides wallet and tech service support as requested by them.
It is clear from these developments that ownership rights remain with Zanmai Labs and it is ultimately responsible for retrieving all funds from Binance before their deadline ends on Feb 3rd 2023 at 11:59 UTC . It remains unclear how this situation will resolve itself but one thing is certain – both parties must come together to agree on terms before things can proceed further .