Binance Terminates Wallet and Related Technology Services to WazirX's Operator Zanmai Labs

Binance, the global blockchain company behind the world's largest digital asset exchange by trading volume and users, posted on Friday that it was terminating its wallet and related technical services for Zanmai Labs (Zanmai), the operator of Indian crypto exchange WazirX. WazirX said it has transferred funds held with Binance for its operations to other wallets. The dispute between the two companies escalats further.

Binance and Zanmai previously clashed over the ownership of WazirX. In November 2019, Binance announced the acquisition of WazirX in a blog post. In the middle of last year, tIndia's Enforcement Directorate froze $8.1 million in funds held by WazirX, and then Binance denied the deal​, saying that "Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX."

Binance explained in last Friday's statement: "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."

The company further stated: "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."

Binance alleged that Zanmai had issued a series of misleading statements regarding "Binance's alleged role in and responsibility for operating the WazirX exchange," putting forth to "the public misrepresented Binance as maintaining control over WazirX users' assets, user activity, and the platform's operations".

According to the announcement, Binance asked Zanmai to retract its false public statement on January 26, otherwise it would terminate its service. Since Zanmai rejected the request, Binance then asked Zanmai to remove its funds from the Binance wallet by 3 February 2023 (23:59 UTC).

Late on last Friday, WazirX tweeted that it was transferring funds, saying "Users can continue to trade, deposit & withdraw funds as usual," the tweet continued," adding that "Your funds are safe with us."

The amount of the funds being transferred was not disclosed.