WazirX acquisition not completed

Binance CEO Changpeng Zhao has said the global crypto exchange has “not completed” its acquisition of Indian crypto exchange WazirX.

Zhao’s comments come after India’s financial crime watchdog announced it had frozen WazirX’s assets worth more than 646 million rupees (approximately $8 million, £6.7 million). India’s Law Enforcement Department (ED) said in a statement on Friday that the freeze follows an investigation into money laundering involving 16 fintech firms.

In a press release, ED said:

“Zanmai Labs Pvt Ltd, the company that owns the WazirX Crypto Exchange, has created a web of contracts with Crowdfire Inc. USA, Binance (Cayman Islands) and Zettai Pte Ltd Singapore, obscuring ownership of the crypto exchange. .”

Binance CEO Zhao tweeted:

“On November 21, 2019, Binance published a blog post stating that it had “acquired” WazirX. This transaction did not complete. Binance has never owned shares in Zanmai Labs, the organization that operates WazirX. ”

According to CZ, since the Binance chief is widely known in the crypto ecosystem, his platform will “provide wallet services exclusively for WazirX.”

It is offered only as a technical solution and the Mumbai-based company handles all other aspects of the exchange, including user registration, know your customer (KYC) and transactions, he noted. did.

“Recent allegations regarding the operation of WazirX and how Zanmai Labs has controlled the platform are of serious concern to Binance. Binance is working with law enforcement agencies around the world. We do,” added CZ.

According to ED, the WazirX investigation will begin in 2021 and the platform is not cooperating with authorities.

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