Crypto users in a fix as WazirX, Binance brawl over ownership

Haripriya Sureban | Updated on: Aug 08, 2022
Co-founder of WazirX, Nischal Shetty

Co-founder of WazirX, Nischal Shetty | Photo Credit: Balakrishnan K@Chennai

WazirX investors and traders concerned about the safety of the funds

Bengaluru 

Users of cryptocurrency exchange WazirX are in a fix after a Twitter spat between the co-founder of WazirX, Nischal Shetty, and CEO of global cryptocurrency exchange Binance, Changpeng Zhao(CZ), over the ownership of the platform.

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

Worries surged as Binance had disabled off-chain transfers (transactions occurring on a crypto network that move the value outside of the blockchain) to WazirX. However, according to recent media reports, WazirX founder has said that Binance has restarted off-chain transfers.

In a tweet, Binance CEO 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 to be alarming. “I am concerned as to how this will pan out, and how it will effect 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 Some of the users have even withdrawn their funds.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, 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 totaling ₹64.67 crore. Post this, CZ said that Binance didn’t have any stake in Zanmai Labs. Since then, the founders of both the exchanges 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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