Binance to cease off-chain fund transfer with WazirX

Haripriya Sureban | | Updated on: Aug 08, 2022

| Photo Credit: Dado Ruvic

CEOs of both exchanges face-off on Twitter over ownership of WazirX

 

Global cryptocurrency exchange Binance has said it will be shutting down the off-chain fund transfer channel between WazirX and Binance from August 11. 

This comes after the CEOs of both the exchanges had a spat on Twitter over the ownership of WazirX. Off-chain transactions refer to those that occur on a crypto network that move the value outside of the blockchain.

Patrick Hillmann, Chief Communications Officer, Binance, said: “In order to provide clarity and protection for users, we are removing the off-chain fund transfer channel between WazirX and Binance. Binance will cease to support off-chain fund transfers via the ‘Login with Binance’ option.” 

Users, however, will still be able to deposit and withdraw balances via the standard withdrawal and deposit process between the exchanges.

Hillmann clarified that funds deposited in WazirX are not managed by Binance. “It has come to our attention that some users were given to believe that funds deposited in WazirX were managed by Binance. This is not the case,” he said. He even said the exchange will support Indian regulators in the ongoing matters concerning WazirX.

WazirX users in a fix 

Crypto traders and investors on WazirX are concerned about the safety of the funds on the platform. They have raised queries on various platforms regarding transfer from WazirX to Binance, withdrawals and the future of WazirX’s token, WRX. 

Binance CEO, Changpeng Zhao, in a tweet, said: “If you have funds on WazirX, you should transfer it to Binance. We could disable WazirX wallets on a tech level, but we won’t do that, we can’t/won’t hurt users.”

Faizan Munshi, a crypto trader said he finds the Twitter brawl between CZ and Shetty alarming. “I am concerned as to how this will pan out and how it will affect the operations of WazirX, hence, I am even transferring my funds.” Some of the users have even withdrawn their funds. 

WazirX, however, has assured the safety of funds. Rajagopal Menon, Vice-President at WazirX, said: “We are the only large crypto exchange that allows complete withdrawals of cryptos in India and that shows how solvent we are and how sensible our business model is. INR withdrawals are working, and there is no issue in terms of the structural viability of the company. Users crypto is safe.”

Zanmai Lab Pvt Ltd, which operates WazirX, was the subject of searches by the Enforcement Directorate (ED), which ordered the freezing of its bank accounts totalling ₹64.67 crore. Post this, CZ said Binance didn’t have any stake in Zanmai Labs. Since then, Zhao and Nischal Shetty, co-founder of WazirX, have been engaged in a verbal battle, swapping accusations and denials about the ownership of the exchange on Twitter.

Published on August 08, 2022
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