Binance CEO Changpeng Zhao claimed that the company “does not hold any equity” in Zanmai Labs, the parent company of Indian cryptocurrency WazirX. This, a day after India’s Enforcement Directorate (ED) froze WazirX’s bank balances worth $8 million earlier.
According to a statement, the ED has been investigating WazirX since last year for his alleged role in a money laundering scheme. On August 5, the ED conducted investigations into WazirX co-founder and CTO Sameer Mhatre after suspicions emerged of links to Chinese loan apps.
The gates are wide open
Binance has been under fire since the legal investigation began after CZ denied the acquisition of WazirX. In fact, CZ claimed on Twitter that the WazirX acquisition “never went through.”
It is worth noting, however, that this acquisition was was announced way back in November 2019. A later tweet from CZ confirmed the purchase, with the executive clearly stating “Indian crypto exchange WazirX owned by Binance…”
» Binance-owned Indian crypto exchange WazirX tops $200 million in daily trading volume. eyes $1bn in 2021 – The Financial Express https://t.co/t3GD7UwvYt
— CZ 🔶 Binance (@cz_binance) April 5, 2021
Instead, his last four-parter Position denied this, with CZ claiming that Binance is the target of “false reports”.
“On November 21, 2019, Binance published a blog post that it had ‘acquired’ WazirX. This transaction was never completed. Binance has never – at any point – owned any shares in Zanmai Labs, the entity that operates WazirX,” said Changpeng Zhao.
On the other hand, WazirX founder Nischal Shetty refuted CZ’s claims in his own tweets. Shetty supposed,
“1/ DETAILS about WazirX & Binance: WazirX was acquired by Binance Zanmai Labs is an entity in India owned by me and my co-founders Zanmai Labs is licensed by Binance to operate INR-Crypto pairs on WazirX Binance works crypto-to-crypto pairs, crypto withdrawal processes…”
This is not the first legal battle
Binance is no stranger to legal battles, having been accused of legal wrongdoing numerous times. According Bloomberginvestigations into Binance have widened to look at potential insider trading and market manipulation.
In fact, a Philippines-based think tank claimed that Binance is a “danger to the public” earlier in July. A new lawsuit has been filed against the organization for allegedly counterfeiting TerraUSD, a stablecoin. Earlier in July, developer “CryptoFelon” claimed that Binance CEO Changpeng Zhao is trying to “steal his domain”.