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Why was Indian crypto exchange WazirX forced to transfer assets from Binance’s wallet service?

Binance terminated its wallet services to WazirX after an ultimatum to retract “misleading” statements on ownership and control of the Indian exchange

One of India’s most popular crypto exchanges, WazirX, announced that it has transferred assets to multi-sig wallets after Binance decided to terminate its wallet services to the former, according to a tweet put out by the exchange. The Indian exchange was forced to initiate this transfer following Binance’s warning on January 26, 2023 in which the world’s biggest crypto exchange urged Zanmai Labs (the entity behind WazirX) to retract “false public statements” or terminate the use of its wallet service. Binance added that Zanmai refused to retract their “misleading statements” which is why WazirX had time till February 3, 2023, to remove funds from the accounts used for WazirX’s operations. What is a multisig wallet: It is a type of crypto wallet requiring two or more private keys to perform certain tasks. “This is done to increase the security of the funds stored in the wallet by requiring multiple parties to sign off before sending any transactions,” Coindesk explained. Why it matters: The development is notable as it comes in the aftermath of a public feud between Binance and WazirX over the latter’s ownership. The lack of clarity over the ownership had fuelled uncertainty among users given that the exchange handles crores worth of assets on its platform. What did Binance say: The company accused Zanmai of making a series of misleading claims about Binance’s role in operating WazirX exchange. The company rejected the narrative that Binance maintained control over “WazirX users’ assets, user activity, and the platform’s operations”. It…

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I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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