Main Takeaways
- Binance has no control over WazirX user funds or any aspect of the WazirX exchange’s operations. Rather, as we do for many individuals and organizations, we provided wallet and related technology services to the exchange’s operator, Zanmai Labs (“Zanmai”), – a service we are terminating.
- As at the time of this post, Zanmai, the entity behind WazirX, has not fully withdrawn assets held in the Binance wallets that it uses for WazirX’s operations.
- In line with our efforts to encourage all crypto users to DYOR (do your own research), we wish to remind everyone in the community to always do your own due diligence when deciding where to securely store your digital funds.
- This has no impact on Binance users or their funds.
You may be aware of the public debate between Binance and Zanmai, the entity operating the Indian crypto exchange WazirX, regarding the nature of our relationship. There has been a lot of confusion, and as a WazirX user, you may be worried about your funds on WazirX – after all, it is your right to demand absolute clarity in a situation where your hard-earned money is involved.
To recap, Zanmai has made a series of misleading claims related to Binance’s alleged role in and responsibility for operating the WazirX exchange. The false and misleading narrative put forth to the public misrepresented Binance as maintaining control over WazirX users’ assets, user activity, and the platform’s operations. The reality, as we said time and time again, is that Binance provided Zanmai wallet services only as a tech solution for their operations of the WazirX exchange. Binance has never managed or controlled WazirX’s operations, including in relation to users’ assets and user activity. Our provision of wallet services to Zanmai was not unique – it was similar to arrangements we have with numerous other firms that use our technology and infrastructure to independently run their businesses.
It is in the interests of Binance and the public that Zanmai is not permitted to perpetuate false narratives on the basis of their use of Binance’s wallet services. We view such false claims as an attempt to shift the responsibility over WazirX’s operations to Binance. On 26 January 2023, we offered Zanmai a choice between retracting the false public statements (and continuing to use our services) or terminating the use of our wallet service. Since Zanmai has refused to clarify their misleading statements, Zanmai has till 3 February 2023 (23:59 UTC) to remove the funds from the accounts that they used for WazirX’s operations.
As this deadline is near, we recognize that users whose assets are deposited with WazirX might have legitimate concerns about what will happen to their holdings in light of these events. Binance does not have control over Zanmai’s management of WazirX user funds. Zanmai have informed us of their intention to 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 3 February. However, the responsibility ultimately lies with the Zanmai team to make the withdrawals expeditiously.
Finally, we would like to highlight that these developments have no impact on Binance users, including organizations and businesses which use our wallet services.
https://www.binance.com/en/blog/community/to-wazirx-users-zanmairun-wazirx-can-no-longer-use-binance-wallet-services-6687744643229571570
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