Crypto exchange WazirX clarifies ‘off-chain transactions’ as ED pressure mounts

The news comes as Binance’s CEO and WazirX’s CEO had a vocal disagreement on Twitter regarding the ownership of WazirX

After India’s Enforcement Directorate (ED) issued orders to freeze ₹64.67 crores worth of crypto exchange WazirX’s bank deposits last week, the CEOs of WazirX and the crypto exchange giant Binance are under pressure to confirm whether WazirX is owned by Binance or not. They must also confirm whether transactions between them took place “off-chain.”

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The ED is probing WazirX, one of India’s largest crypto exchanges, which received a show cause notice to the tune of ₹ 2,790.74 crore last year.

WazirX said it has a “no tolerance policy” regarding illegal activities using its exchange and was “fully cooperating” with the ED. It also claimed there was a “major misunderstanding” about the off-chain transactions between WazirX and Binance.

“Off-chain transactions between WazirX and Binance can only be done by a user between his/her/its own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well [and have been submitted to the ED when requested],” said part of the statement.

Binance CEO Changpeng Zhao earlier said Binance provided wallet services for WazirX, and that it could shut down the Indian exchange if it wished to do so. Mr. Zhao further urged WazirX users to move their funds to Binance.

WazirX CEO Nischal Shetty claimed that WazirX was acquired by Binance. But Mr. Zhao disagrees, stating Binance owned no shares belonging to Zanmai Labs, WazirX’s parent.