Binance ceases off-chain fund transfer with WazirX after ED raids

• Binance will cease to support off-chain fund transfers between WazirX Exchange and Binance via the "Login with Binance" option.
  
• Post raid by ED on WazirX’s parent company Zanmai Labs, CEO of Binance denied any ownership in the company.
  
• WazirX is the largest crypto exchange in India and its annual trading volume exceeded $43 billion in 2021.
  

The world's largest crypto exchange Binance, which disowned the Nischal Shetty-run crypto platform WazirX, on Monday said that it is removing the off-chain fund transfer channel between WazirX and Binance.

The crypto platform will cease to support off-chain fund transfers between WazirX Exchange and Binance via the "Login with Binance" option, Patrick Hillmann, Chief Communications Officer, Binance, said in a statement.

"Users will still be able to deposit and withdraw balances via the standard withdrawal and deposit process between Binance and WazirX," he said.

Last week, after the Enforcement Directorate (ED) raids on WazirX's parent company Zanmai Lab, Changpeng Zhao, Founder and CEO of Binance, had said that the company does not own any equity in Zanmai Labs, the entity operating WazirX and established by the original founders.

The ED searched the director of WazirX cryptocurrency and froze its bank assets worth ₹64.67 crore "for assisting accused instant loan App companies in laundering of fraud money via purchase and transfer of virtual crypto assets".

Referring to Zanmai Labs, Hillmann said, "In relation to their operations of the WazirX Exchange, it has come to our attention that some users were given to believe that funds deposited in WazirX were managed by Binance. This is not the case".

Moving forward, Binance will support Indian regulators in the ongoing matters concerning WazirX. WazirX is the largest crypto exchange in India and its annual trading volume exceeded $43 billion in 2021.

Shetty, co-founder of WazirX, disputed Binance's claims in a series of tweets last week.

"More facts about WazirX: Binance owns WazirX domain name, Binance has root access to AWS servers, Binance has all the Crypto assets, Binance has all the Crypto profits. Don't confuse Zanmai and WazirX", he had tweeted.

On November 21, 2019, Binance said it had "acquired" WazirX. "This transaction was never completed. Binance has never - at any point - owned any shares of Zanmai Labs, the entity operating WazirX," according to Zhao.