Nishal Shetty, co-founder of Indian crypto exchange WazirX, refuted a series of statements from Binance chairman Changpeng Zhao regarding the platforms’ relationship.

1/ Binance Parent including deal

After some media reports about the Binance structure, we asked this

We received a vague response that the parent entity is being restructured

It’s been months, still waiting for Binance Parent

Can Binance name the Main asset? https://t.co/5oehKqaTxp

— Nischal (Shardeum) ⚡️ (@NischalShetty) 6 August 2022

Zhao previously stated that Binance never had a stake in Zanmai Labs, the company behind WazirX.

He clarified that the acquisition of the Indian exchange, which was announced in his message dated November 21, 2019, was never completed. On August 5, 2022, Binance representatives issued a press release regarding the purchase of “certain assets and intellectual property.”

Zhao’s remarks came after the Enforcement Agency of India’s Ministry of Finance (ED) suspected WazirX of laundering $350 million, according to media reports, the regulator froze the assets of the exchange for $8.16 million as part of the lawsuit.

“Fact: We asked WazirX System Source Code, Distribution, Operations in February of this year. This we were denied. Binance does not control these systems. WazirX did not appear to cooperate with us and interact with ED,” Zhao wrote.

Continuing to move away from the Indian platform, the company announced that the off-chain transfer channel between Binance and WazirX has been closed as of August 11.

“The technology, product, space, brand and everything else was sold to Binance by our Singapore company, Zettai,” Shetty told CoinDesk.

According to him, there are all the documents confirming the sale, but he cannot show them “for legal reasons.” He noted that WazirX is a technology. Therefore, there is no reason to believe that Binance does not control the platform, Shetty is sure.

Following the deal, Binance asked Zanmai Labs, Zettai’s India division, to launch cryptocurrency trading in rupees (INR) in India and granted a license, Shetty said.

He explained that all cryptocurrency trades on the platform, deposits and withdrawals in digital assets are controlled by Binance. Zanmai is solely responsible for trading INR pairs and fiat deposits and withdrawals.

Shetty added that they cooperated with AS and provided the documents requested during the investigation.

Recall that the regulator had claims against WazirX in 2021 – it was suspected of violating the exchange’s currency rules.

That same year, one of Binance’s divisions came to the attention of the Indian Anti-Money Laundering Agency.

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