Indian cryptocurrency exchange, WazirX must withdraw any remaining funds it has stored in Binance wallets by midnight UTC on February 3rd.
A recent blog post claims that Binance is prohibiting WazirX from using its services, which is the latest development in the scandal involving the international cryptocurrency exchange Binance and Zanmai, the company behind the Indian cryptocurrency exchange WazirX.
On February 3, Binance published a post acknowledging the ongoing “public dispute” with Zanmai regarding Zanmai’s assertions that Binance was responsible for running WazirX.
On January 26, Binance announced that WazirX had been given the choice to either retract its claims and keep utilizing the Binance wallet services, or to stop using them.
Zanmai has until February 3, 2023, 23:59 UTC to withdraw all of its funds from the accounts utilized for WazirX operations, says the announcement, which claims that Zanmai made no retractions.
According to Binance, as at the time of writing, Zanmai has money in its wallets that is still being used for business needs. This comes after WazirX disclosed that 90% of its users’ assets are held in Binance wallets and the remaining 10% are held in cold storage wallets, less than a month after that disclosure.
Following the release of numerous proofs-of-reserves by cryptocurrency exchanges in the wake of the FTX crisis, that announcement was made. Over the past year, it has run into trouble with the local authorities. Authorities in India claim that the exchange helped to launder about $130 million in money.
At the time of the investigation, the exchange had millions of user dollars frozen. At this point, Binance publicly started to distance itself from the Indian exchange.
This action was taken in the form of a tweet from Changpeng Zhao, CEO of Binance, in which he made it clear that Binance does not own the exchange.
Following this declaration, Binance stopped off-chain fund transfers from the exchange and sided with Indian local authorities throughout the WazirX probe.
