The WazirX-Binance Connection: A Timeline of Events as They Unfold

Celebrated in 2019 as the first acquisition in the Indian crypto space, the relationship between the two entities is now in question as the Enforcement Directorate (ED) froze the funds of the WazirX cryptocurrency exchange.

While the world's largest crypto exchange by trading volumes, Binance proudly announced that it had "acquired" WazirX in a blog post on its website in November 2019 , the company's CEO, Changpeng Zhao apparently backtracked on the agreement between the two parties.

Amid an ongoing war of words between WazirX founder Nischal Shetty and Zhao, investors are trying to determine who owns and controls WazirX.

Decryption of the 2019 announcement

Filled with a group photo showing Zhao and Shetty smiling profusely, the blog post announced Binance's acquisition of WazirX and detailed how users of the platform could purchase cryptocurrencies. currencies using Indian Rupees (INR), invest in stablecoins like Tether (USDT), and access the full range of cryptocurrencies directly through Binance trading platforms.

It also explicitly states that the acquisition and integration of WazirX is part of the company's strategy to enhance its growing list of global partners, with the aim of providing the global crypto community easy access to cryptocurrencies in a fast and secure way.

Zhao even went a step further, explaining Binance's commitment to growing India's crypto ecosystem and making India a global center for blockchain innovation.

Shetty commented on how the acquisition gives WazirX the opportunity to expand beyond India and reach a wider audience, with a focus especially on developing countries by building fiat ramps.

Suspicious explosions on social networks

WazirX is currently in the spotlight for being charged by ED, India's law enforcement agency, which focuses on major economic crimes, d help instant loan app companies launder money.

In fact, the agency froze the financial assets of the Indian crypto exchange after a search operation was conducted under the Prevention of Money Laundering Act (PMLA) on August 3, 2022.

Soon after, Zhao posted a series of tweets on his official Twitter account on August 5, apparently distancing Binance from all operations of WazirX or its holding company Zanmai Labs.

In his tweets, Zhao clarified that Binance has no stake in Zanmai Labs and only provides wallet services to WazirX as a technology solution.

Furthermore, he states that recent developments regarding WazirX have deeply concerned Binance and underlined that the Indian crypto exchange is solely responsible for all aspects such as user registrations, KYC, trading and withdrawals.

Apparently this also elicited responses from Shetty, with a war of words still ongoing between the heads of the two crypto companies.

How WazirX sees its association with Binance

While emphatically denying all accusations made by the ED and reiterating WazirX's cooperative stance, Shetty posted several tweets detailing how Binance is the real owner of WazirX on his Twitter account.

It goes further by stating that Zanmai Labs is a separate entity and that Binance owns the WazirX domain name, has root access to AWS servers, and retains all profits and crypto assets stored on the platform.

Elucidating further how Zanmai Labs is an Indian entity owned by Shetty and the other co-founders, he states...