Binance stops wallet Services for WazirX
Crypto giant Binance has terminated wallet services for Zanmai Labs, which operates the homegrown crypto exchange WazirX. In a statement, Binance has directed Zanmai Labs to withdraw all funds held in Binance wallets for WazirX’s operations. The claimed misleading statements relate to the public spat between the cofounders of the two companies – Changpeng Zhao and Nischal Shetty – over Binance’s purported ownership of Zanmai Labs.
The blog explicitly stated that Binance has no control over Zanmai’s management of user funds, adding that the former only provided wallet services to the latter. Binance further claimed that the provision of such a tech solution was ‘not unique’ and similar to arrangements with multiple other firms that use Binance’s infrastructure to ‘independently’ run their businesses.
Binance claims to have reached out to Zanmai Labs late last month to retract ‘the false public statements’ or terminate the use of its wallet services. Pursuant to this, Zanmai executives are said to have told Binance that the former would withdraw the assets from the relevant accounts.
“On our end, we are doing everything we can to facilitate this process. As an exception, we have invited Zanmai to work out arrangements with us to withdraw any remaining assets in the relevant accounts after February 3. However, the responsibility ultimately lies with the Zanmai team to make the withdrawals expeditiously,” Binance said.
WazirX commented, “We have initiated the process of transferring assets to multi-sig wallets, which we expect to be fully completed within the next few hours. Users can continue to trade, deposit & withdraw funds as usual. Your funds are safe with us.”
The company noted that the move would have no impact on Binance users and their funds.
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