What is The Deal With The WazirX and Binance Dispute?

Cryptomode Crypto Exchange WazirX

.A significant conflict between WazirX, the esteemed Indian cryptocurrency exchange, and Binance, the world’s leading exchange, has been in the spotlight for an extended period. However, as the contention prolongs, it poses a pertinent question: Is there a resolution on the horizon?

The Contention and Clarification by WazirX

To shed light on the complex, ongoing quarrel, WazirX has stepped forward with a clarifying statement. The Indian exchange has unequivocally stated that Binance holds the reins to the WRX token. Further, it has been disclosed that Binance orchestrated the initial exchange offering (IEO) for WRX and retained all the revenue generated through the sale.

Notably, Binance, the global titan in the cryptocurrency exchange sphere, oversees and directs the wallets containing locked and released WRX tokens. This management extends to the dispersion of tokens per the WRX Release Schedule.

WazirX has divulged a roster of wallet addresses wherein Binance currently possesses an astounding 580.78 million WRX tokens, both locked and unlocked. 116.8 million WRX tokens (11.68% of the total supply) have been relocated to a treasury account on binance.com in four separate transactions.

The WRX Burn Events: An Unresolved Issue

A surprising revelation from the new statement is that the WazirX team has not been on the receiving end of any token allocations. Moreover, Binance, as the controlling entity, is tasked with the execution of the quarterly WRX token burn.

The last known WRX burn event for Q4 2021 occurred on March 9, 2022, where Binance incinerated 9,633,333 WRX tokens, equivalent to ₹47 Crores INR ($6 million) during the seventh burn event. 

However, a glaring lapse has emerged in this process, with Binance abstaining from conducting the quarterly burn for five consecutive quarters since January 2022. WazirX has also laid bare the details of these overdue burns, including the quantity of WRX tokens due for each burning period.

This long-standing feud between the two exchange giants has undoubtedly left WazirX’s clientele hopeful that the company’s recent statement may signal the onset of a more tranquil period for the exchange.

The Withdrawal of Wallet Services by Binance

A turning point in this dispute came when Binance halted the provision of wallet services to WazirX. That prompted the Indian exchange to extricate its assets from Binance’s wallets. Binance justified this action through a blog post, pointing the finger at Zanmai Labs – the parent company of WazirX – for disseminating misleading statements about their affiliation.

In response to the alleged misinformation, Binance gave Zanmai Labs a choice: recant the statements, retain the wallet services, or sever ties. Binance deemed Zanmai’s response inadequate, leading to the ultimate dissolution of the partnership.

To ensure a seamless transition, Binance established a February 3, 2023 deadline for Zanmai to withdraw funds from the WazirX operation accounts. Exceptionally, Binance also permitted Zanmai to organize the withdrawal of any residual assets.

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