The ongoing corporate battle between Binance and WazirX has sparked a new dramatic controversy this week. WazirX on Wednesday, February 8th, accused Binance of spreading false and misleading information against them on the market. The development comes just days after Binance announced that it had severed its ties with WazirX, citing WazirX’s failure to complete desired negotiations as the main reason. The feud between these two crypto exchanges has been going on since August of last year and is only getting worse with time.
“WazirX users need not worry about Binance’s announcement. Users can continue to trade, deposit, and withdraw their funds as usual,” Binance published on Feb. 3 a blog entry said that it decided to ban WazirX from using its services.
Binance has claimed that its ultimatum to WazirX to withdraw its statements went unanswered, leading it to cut all ties with the latter.
“Zanmai has made a number of misleading claims related to Binance’s alleged role and responsibility for operating the WazirX exchange. The false and misleading representation put forward to the public falsely portrayed Binance as retaining control over WazirX users’ assets, user activities and the operations of the platform. The reality is that Binance only provided the Zanmai wallet services as a technical solution to run the WazirX exchange. Binance has never managed or controlled the operation of WazirX, including in relation to users’ assets and user activity,” Binance said in its post.
As for WazirXBinance has been at fault ever since denied possession of the former.
binance had claims in a November 2019 blog that WazirX was acquired. Last year, however, Zhao claims that the transaction to acquire Wazirx “never closed”.
This development unfolded into a series of arguments exchanged between the honchos of both exchanges on Twitter.
WazirX hit back at Binance, saying, “Binance’s claims on their blog are false and unfounded. As for Binance’s actions, we are taking the necessary steps to seek recourse and protect our legal rights.”
In January this year, WazirX announced this week that it held US$285 million (about Rs.2,320 billion) in its reserves. At that time, it turned out that around 92 percent of all user assets are held in Binance wallets, equivalent to US$259.07 million (roughly Rs.2,120 billion).
