The world’s largest crypto exchange Binance will cease to support off-chain transfer channels between WazirX and Binance. Users on the WazirX platform will not be able to transfer funds to Binance using the “login with Binance” option. Now, they will have to use the standard deposit and withdrawal process to complete their transactions.
With this, Binance is trying to move away from the ongoing investigation against Zanmai Labs, the parent company of India-based WazirX.
Since then, the relationship between Binance and WazirX has not remained the same, given that WazirX was allegedly involved in facilitating money laundering activities. Consequently, $8 million belonging to the exchange was frozen.
The investigation of WazirX has put the exchange in the limelight for all the wrong reasons. Also, it has been linked as a Binance-owned exchange after a supposed purchase in 2019.
Last week, after the Enforcement Directorate (ED) raids on Zanmai Labs, Binance CEO Changpeng Zhao declared that Binance does not own any equity in Zanmai Labs.
He also clarified that the process to acquire Binance has not been completed since 2019. WazirX has wallet integrations with Binance to allow users to make off-chain transfers to help save network fees. CZ suggested that WazirX users should transfer their funds to Binance as they could anytime disable WazirX wallets.
The feud between Binance and WazirX has the potential to make users suffer greatly. On the other hand, WazirX’s founder Nischal Shetty presented his arguments claiming that Binance acquired the exchange and owns it and this went on with a slew of tweets from both CZ and Shetty.
