WazirX Says Not Responsible For User Misuse If Any, Amid Binance Spat

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In the wake of Binance announcement on ceasing off-chain fund transfer channel with WazirX, the Indian exchange issued a statement. Last week, founders of both the companies have publicly spoken about not owning and controlling WazirX. CZ said Binance does not have any control over WazirX operations in sign up, KYC and trading. In the latest update from WazirX on Tuesday, the management reiterated complete support to the Indian authorities.

The country’s Enforcement Directorate (ED) had last week raided an office of WazirX over money laundering concerns. Bank accounts belonging to WazirX were seized with money worth over Rs 64.67 crores (Approx $8.13 million). The agency accused WazirX of assisting instant loan apps in the laundering of fraudulent money. It alleged that the funds were being transferred through crypto assets. Right after the ED searches on WazirX, Binance CEO CZ said Binance never owned WazirX, contrary to popular belief.

Binance WazirX Spat

In the statement, the Indian exchange said its users would agree to follow laws while signing up on the platform. “For every transaction, we are able to produce the KYC details of the relevant user.” It further said the parent company does not have any affiliation with fraudulent users. Zanmai Labs is unaware about the purpose of their transactions, it clarified in the statement.

“ED appears to be investigating the transactions of certain users and Zanmai Labs has no affiliation to such users and is unaware about the purpose of their transactions. Zanmai Labs is in the position of any other intermediary whose platform may have been misused.”

Off-Chain Transactions

Also, WazirX said there seemed to be a misunderstanding about off-chain transactions between the two exchanges. “Off-chain transactions between WazirX and Binance can only be done by a user between own account on the two platforms.” This makes the KYC registered for all off-chain transfers. However, WazirX said it was open to providing law enforcement agencies with complete information about the accounts involved in transfers.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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