Tech

Binance to cease off-chain transfers for WazirX

08/09/2022
Bitcoin Ethereum News

Binance has announced plans to cease support for off-chain fund transfers between itself and WazirX, effective August 11.

Users on the WazirX platform will not be able to transfer funds to Binance using the “Login with Binance” option. Instead, they will have to use the standard withdrawal and deposit process to complete their transactions.

Binance is moving away from the ongoing investigation against Zanmai Labs Pvt Ltd, the parent company of WazirX.

The Growing Feud between Binance and WazirX

The relationship between Binance and WazirX has not remained the same ever since the ED commenced an investigation of WazirX for allegedly facilitating money laundering activities. As a result, $8 million belonging to the exchange was frozen.

The investigation of WazirX perhaps drew much media attention because it has been linked as a Binance-owned exchange after a supposed purchase in 2019. Binance CEO Changpeng Zhao recently denied claims that Binance owned the exchange.

He stated that the process to acquire Binance has not been completed since 2019. WazirX has wallet integrations with Binance to allow users to make off-chain transfers between the exchanges to help save network fees. CZ advised that WazirX users should transfer their funds to Binance as they could disable WazirX wallets anytime.

In the public feud, WazirX’s’ founder Nischal Shetty presented his arguments to insist that Binance acquired the exchange and owns it.

Source: https://cryptoslate.com/binance-to-cease-off-chain-transfers-for-wazirx/