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According to Nischal, all legal documents to prove WazirX owned by Binance

Nischal claimed that he has all the documents to prove Zanmai Labs has a license from Binance to process rupee transactions.

The war between WazirX and Binance seems to escalate with each passing day.

Nischal Shetty, the founder of WazirX, claimed to have all the legal documentation necessary to substantiate Binance’s control over all crypto-to-crypto trading and crypto deposits and withdrawals on the platform.

In a recent interview with Moneycontrol, Nischal said, “Zanmai Labs, an Indian entity that operates WazirX, is owned by him and other co-founders and has a license from Binance for processing rupee transactions. WazirX as a product and a brand is owned by Binance, which acquired it in 2019.”

He further said, “there was a banking ban in place when the acquisition took place, and after the ban was lifted, an Indian entity was needed for WazirX to process rupee deposits and withdrawals.”

Additionally,” “That is when they suggested, and we obliged that we use an entity we own and we get a license from them (Binance) for processing rupee deposits and withdrawals. That is how Zanmai got the license for WazirX from Binance, and you can only give a license if you own it. That is proof they had acquired WazirX.”

On the other hand, Changpeng Zhao, founder of Binance, stated last week that it does not own any equity in Zanmai Labs, the entity that operates WazirX.

The Tug of War

Changpeng Zhao has claimed in a series of Twitter threads that Binance only provides wallet services for WazirX as a tech solution.

However, Nischal has denied Zhao’s contradictory statements.

According to Nischal, “Zanmai Labs is an India entity owned by him and other co-founders, which has a license from Binance to operate INR-crypto pairs on WazirX.”

He added, “Binance also owns the WazirX domain name and has root access to the exchange’s AWS servers, keeping all crypto assets and profits from crypto trades.”

However, Zhao asserted that Binance had asked the Indian exchange for the system source code, deployment, and operational transfer in February while denying having any authority over WazirX technologies. WazirX reportedly declined.

Users dilemma

When asked what would happen to users that deposited money with WazirX if the accounts were to stay frozen for an extended period, Shetty said that frozen does not imply that the money is gone.

Nischal said,” “What is more important is solvency. We are not short on money. Would there be a delay in withdrawals if too many people come in at the same time? May or may not. But this can happen to any exchange. But our deposits have not been reduced. User funds are safe with us and have not gone anywhere; it is still in the bank. We never use our user funds for any purpose.”

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