Summary:
• Binance has stopped its wallet services for WazirX due to false claims made by Zanmai Labs, which manages WazirX.
• A public argument sparked the end of the collaboration between two firms on Twitter regarding who holds authority over WazirX.
• A recent proof of reserves report revealed that 90% of user assets are stored in Binance wallets.
Binance Ends Relationship with WazirX
Binance, the largest cryptocurrency exchange globally, has discontinued its wallet support for Indian cryptocurrency platform, WazirX, due to untrue statements made by Zanmai Labs which manages the platform. The decision was made after a public argument resurfaced between WazirX co-founder Nischal Shetty and Binance CEO Changpeng Zhao concerning who holds authority over the Indian exchange.
Deadline Set for Retrieval of Funds
Binance has set a deadline of February 3rd, 2023 at 11:59 UTC for Zanmai Labs to retrieve funds utilized for WazirX’s operations. Although Zanmai Labs stated intentions to retrieve assets, Binance mentioned that final responsibility falls on them.
Proof of Reserves Report Revealed
A recent proof of reserves report revealed that 90% of user assets are stored in Binance wallets with a total value of $285 million represented by USDT stablecoins tied to U.S Dollar value. Other exchanges held only $26 million worth of user assets while 92% were held in Binance wallets.
Binance does not Own Wazirx
Despite announcements pointing to the contrary back in 2019, Binance emphasized that it does not own any part of Wazirx and provides tech and wallet services only as a third party provider.
Conclusion
The relationship between these two companies ended abruptly following an argument over ownership rights which caused an uproar within the crypto community worldwide and prompted authorities to investigate alleged violations in foreign exchange regulations in India by WazirX