• Binance has stopped its wallet services for WazirX following a public argument over who has ownership of the Indian exchange.
• CoinGabbar’s proof of reserves report revealed that 90% of WazirX’s user assets are stored in Binance wallets.
• Binance has set a deadline of February 3, 2023 for Zanmai Labs to retrieve funds utilized for WazirX’s operations.
Binance Stops Wallet Services For WazirX
Binance, the biggest crypto exchange globally, recently announced that it has discontinued its wallet support for WazirX, an Indian cryptocurrency platform. This comes after a public argument over who has ownership of the Indian exchange between Binance CEO Changpeng Zhao and WazirX co-founder Nischal Shetty on Twitter.
CoinGabbar’s Proof Of Reserves Report
CoinGabbar, a third-party website that tracks crypto assets, recently published a proof of reserves report which revealed that 90% of WazirX’s user assets are stored in Binance wallets. At the time of the report, WazirX had a total user asset value of $285 million represented by the stablecoin USDT tied to the value of the U.S. dollar. Binance wallets held 92% or $259.07 million while other exchanges held only $26.45 million worth of assets belonging to users on the platform.
False Claims By Zanmai Labs
The end of this relationship between these two firms was sparked by false claims made by Zanmai Labs, which manages WazirX concerning who holds authority over it as per Indian authorities looking into alleged violations against foreign exchange regulations from them . Binance gave an opportunity to Zanmai Labs to withdraw its untrue statements or end their partnership but since they did not receive satisfactory reply it was forced to end their association setting a deadline on Feb 3rd 2023 at 11:59 UTC for them to retrieve all funds utilized for operating purposes on behalf of users on its platform .
Binance Does Not Own WazirX
Despite announcements back in 2019 pointing otherwise ,Binance emphasized that it does not own nor have any stake in majority share holdings inW azrix and merely provides tech and wallet services akin any other service provider as part of their business model .
Final Responsibility On Zanmai Laboratories
Finally, despite voicing intentions to retrieve all assets due ,the final responsibility lies with Zanmi Laboratories who must make sure they carry out withdrawals before deadline set by binance expires else they might risk losing all their hard earned users trust and respect among cryptocurrency space if they fail to do so .