WazirX to Binance transfer is recorded in our database, tweets Nischal Shetty

WazirX's Founder Nischal Shetty

Hours after an unexpected twist, where Binance’s CEO Changpeng Zhao or ‘CZ’ denied owning any equity in Indian cryptocurrency trading platform WazirX and even the completion of its 2019 acquisition, a series of tweets were exchanged between him and the crypto bourse founder Nischal Shetty on August 6.

WazirX is the largest cryptocurrency exchange in India, handling over 50 percent of the country’s crypto trading volumes, while Binance is one of the largest exchanges in the world.

In a bunch of follow-up tweets, CZ retweeted Shetty’s previous post reiterating Binance’s ownership, saying: “Sad that these have to be debated on Twitter: Binance provides wallet services for WazirX. WazirX domain is transferred to our control. We were given a shared access to an AWS account. We could shut down WazirX. But we can't, because…”

… “It hurts users. Binance does NOT have control on operations including 'user sign-up, KYC, trading and initiating withdrawals' as stated earlier. WazirX's founding team controls that. This was never transferred, despite our requests. The deal was never closed. No share xfers.”

According to CZ, the WazirX founding team had control of the operations of the platform, while Binance was never given any data or control of users, KYC etc.

“We would love to work with ED to fix these issues in WazirX,” he added.

Sad that these have to be debated on Twitter:

Binance provides wallet services for WazirX.
WazirX domain is transferred to our control.
We were given a shared access to an AWS account.

We could shutdown WazirX. But we can't, because.. 1/2 https://t.co/YoMIgAHC5v

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— CZ Binance (@cz_binance) August 5, 2022

“Happy to solve it publicly so everyone is aware. Transparency wins. In this tweet you’re saying you want control of sign-ups and KYCs. But that part is run by Zanmai India through a license by Binance. Are you open to closing deal by acquiring Zanmai India then? Let’s solve it,”Shetty said.

Re-quoting several of CZ’s comments Shetty said that ‘We could shut down WazirX’ – “Proves you have control.”

“‘Shared access of AWS’ - You have ROOT access of AWS!”, Shetty clarified.

“Anyone with root access controls AWS ‘WazirX domain transferred to our control’ - Good to see you confirm that Only control now is Zanmai, why are you not taking it?” he added.

Anyone who has used the offchain transfer option knows that they can ONLY transfer to their own account

There is always KYC for offchain transfers

Offchain transfer data is stored & available in the database

Whenever authorities have requested access of offchain data we comply

— Nischal (Shardeum) ️ (@NischalShetty) August 6, 2022

 “All user assets - Crypto & INR on WazirX are safe. WazirX has always ensured KYC is conducted, AML policies are in place. We only allow bank transfers so everything is traceable. WazirX to Binance transfer is recorded in our database ALWAYS and it’s ONLY between users own account,” Shetty wrote.

This development comes hours after the Enforcement Directorate (ED) issued a statement saying it has frozen WazirX’s bank assets worth Rs. 64.67 crore. The agency took action against the WazirX director in relation to assisting the accused instant loan app companies in the laundering of fraud money through the purchase and transfer of virtual crypto assets.

Last week, the finance ministry told the Rajya Sabha that the ED is investigating two cases against WazirX under the Foreign Exchange Management Act, 1999 (FEMA), adding that its parent company Zanmai Labs was using the walled infrastructure of Binance.