Binance CEO Warns 'We Could Disable Wazirx Wallets on a Tech Level'
The Binance CEO, Changpeng Zhao (CZ), has warned that his company
could "disable Wazirx wallets on a tech level," advising anyone with
funds on the Indian crypto exchange to transfer them to Binance. The warning
followed numerous tweets by CZ and Wazirx’s founder regarding whether Binance
acquired Wazirx.
Binance CEO Warns Investors to Transfer Funds
The conflict
between global crypto exchange Binance and Indian crypto exchange Wazirx has
deepened. Binance CEO Changpeng Zhao (CZ) tweeted on Friday, advising investors with
funds on Wazirx to transfer them to Binance. He warned: "We could disable
Wazirx wallets on a tech level."
The dispute
between Binance and Wazirx arose when the Directorate of Enforcement
(ED) froze the bank assets of Wazirx as part of its money laundering
investigation.
Following the
ED’s announcement, Binance’s CEO quickly denied that his company had acquired
Wazirx almost three years after the two exchanges announced the acquisition.
While Zhao
claimed that the acquisition of Wazirx "was never completed," Wazirx
founder Nischal Shetty disagreed and maintained that his exchange was indeed
acquired by Binance.
Binance vs. Wazirx: Ownership Dispute?
Attempting to
prove that Binance owns Wazirx, Shetty tweeted that Binance owns Wazirx’s
domain name, has root access to its Amazon AWS web hosting servers, has all the
crypto assets, and receives all the crypto profits.
However, CZ
argued: "The Wazirx founding team maintained control of the operations of
the platform. We (Binance) were never given data or control over users, KYC, or
anything else.”
Zhao said:
"We do
not have control of the trading system. You just gave the AWS login, no source
code, and no deployment capability. You also retain access to the AWS account,
source code, deploy, etc."
In a
follow-up tweet, CZ claimed that Wazirx had been uncooperative with Binance,
adding that the exchange appears to be uncooperative with the ED as well.
Regarding the
ED’s investigation, Shetty tweeted that Zanmai Labs, the entity that owns
Wazirx, "has been cooperating with ED for over 7 days and has submitted
all the required data." Wazirx also tweeted:
"We have been fully cooperating with the Enforcement
Directorate (ED) for several days and have responded to all their queries fully
and transparently. We do not agree with the allegations in the ED press
release. We are evaluating our further plan of action."
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