Binance CEO Denies Buying WazirX After It Was Investigated for Money Laundering

Binance CEO has denied that WazikX belongs to Binance after the exchange was frozen by the Financial Crimes Authority of India to investigate money laundering.

As updated in an article by Coincu News, on August 5th, India’s Financial Crimes Authority, the Federal Bureau of Enforcement (ED) froze the assets of major crypto exchange WazirX, acquired by Binance in 2019, as part of an investigation into suspected foreign exchange regulation violations.

The ED announced it had frozen assets worth 646.70 million rupees ($8.16 million). The agency asserted its actions were related to the investigation because of suspicions about WazirX exchange’s role in assisting instant loan application companies to launder proceeds of crime by converting them into cryptocurrency on its platform.

Binance CEO Denies Acquiring WazirX

On the evening of August 5, Binance CEO Changpeng Zhao officially posted on his personal page to explain the truth about the relationship between WazirX exchange and Binance. He said Binance does not own any equity in Zanmai Labs, the company that runs WazirX and was founded by the original founders.

Instead, Mr. Changpeng Zhao went on to explain that Binance only provides wallet services to WazirX as a technology solution. There is also an integrated use of off-chain transactions, to save on network costs, with no extra involvement. All other aspects including user registration, KYC, trading and withdrawals will be managed by WazirX.

After the news confirmed by Binance that made the previous drop in WRX price even more volatile, WRX is currently trading at $0.259 down 5.82% in 24 hours.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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