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WazirX Exchange Clarifies Binance Relationship After Long Feud

2 mins
Updated by Kyle Baird
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In Brief

  • WazirX clarifies that Binance controls the WRX token and conducted the initial exchange offering for it.
  • Binance manages and controls the wallets holding locked and released WRX tokens.
  • Binance is also responsible for conducting the quarterly burn of WRX tokens, but hasn't done so for the past five quarters.
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WazirX has made an effort to bring clarity to contentious aspects of its ongoing dispute with Binance. The feud between the two exchanges has persisted for several months. Is there light at the end of the tunnel?

WazirX, an India-based exchange, has released a statement clarifying that Binance controls the WRX token. The exchange revealed that Binance conducted the initial exchange offering (IEO) for WRX. And also confirmed that Binance collected and kept all sale proceeds from the IEO.

WazirX and Binance Interact

Binance, the world’s largest exchange, also manages and controls the wallets holding locked and released WRX tokens. This includes the release of such tokens based on the WRX Release Schedule.

WazirX has provided a list of wallet addresses where Binance currently holds 580.78 million locked and unlocked WRX tokens. 

Binance reportedly transferred 116.8 million WRX tokens (11.68% of the total supply) to a treasury account on binance.com in four transactions on various dates from these unlocked tokens.

According to the new statement, the WazirX team has not received any token allocations. And Binance is responsible for the quarterly burn of WRX tokens.

The last WRX burn event for the October–December 2021 quarter was executed by Binance on the unlocked token mentioned above on March 9, 2022. Binance burned a total of 9,633,333 WRX, equivalent to ₹47 Crores INR ($6 million) during the seventh burn event. However, Binance has not conducted the quarterly burn for the past five quarters, i.e., from January 2022 onwards.

WazirX has shared details of the pending burns, including the number of WRX to burn in each period.

WazirX and Binance Clash

The world’s biggest exchange and WazirX have now been feuding for some time. WazirX customers are likely to hope that the new statement portends a period of calm for the exchange.

Binance had previously stopped providing wallet services to WazirX and asked the Indian crypto exchange to withdraw its assets from Binance wallets.

Binance announced the termination in a blog post, citing Zanmai Labs—WazirX’s owner—making misleading statements about their relationship as the reason.

The complainant then gave Zanmai a choice: retract the statements and continue using the wallet services or end the partnership. For Binance, Zanmai’s response fell short, resulting in the partnership’s termination.

To resolve the issue, Binance set a Feb. 3, 2023 (23:59 UTC) deadline for Zanmai to pull funds from the WazirX operation accounts. Binance also granted an exception for Zanmai to arrange the withdrawal of any remaining assets.

Top crypto platforms in the US | March 2024

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Josh Adams
Josh is a reporter at BeInCrypto. He first worked as a journalist over a decade ago, initially covering music before moving into politics and current affairs. Josh first owned Bitcoin in 2014 and has followed the space ever since. He is particularly interested in Web3 adoption, policy and regulation, CBDCs, privacy, and the future of the metaverse.
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