Binance faces a legal threat as a result of WazirX's response to the suspension of wallet services.

The Indian exchange gave its clients the reassurance that their money was kept in multi-signature wallets that met the highest standards in the sector.

Investors and crypto authorities alike remain to be perplexed by the mysterious and interesting management of the Indian cryptocurrency exchange WazirX. Top executives from Binance and WazirX have been fighting for the past two weeks. WazirX CEO Nischal Shetty and Binance CEO Changpeng Zhoa immediately accused one another of lying regarding the latter's shareholding in August 2022.

WazirX Issues a Legal Threat Against Binance

In its most recent statement, WazirX referred to the assertions made by Binance's February 3 announcement as “false and unsubstantiated,” giving its alienated Indian partner only a few hours to transfer all of its cash from its wallets and balances.

On that day, in response to the ultimatum, WazirX tweeted that it was “transferring assets to multi-sig wallets,” and that it anticipated finishing “within the next few hours.”

In a brief statement on February 7, WazirX—a Singapore-based cryptocurrency exchange with a concentrate on India—said users shouldn't worry because “WazirX's assets are saved in conformance with industry-leading standards” in the wake of its dispute with Binance. However, the declaration ultimately threatened Binance with court proceedings.

WazirX said:

“The allegations made by Binance in their blog are false and unsubstantiated. As far as Binances actions are concerned, we are taking the necessary steps to seek recourse and protect our legal rights,”

Date by Which Binance Will Terminate Its Wallet Service

The largest cryptocurrency exchange in the world slammed the Indian-based platform for making “misleading assertions linked to Binance's supposed role in and responsibility for operating the WazirX exchange,” which it said was the cause of the harsh choice.

“Since Zanmai has refused to clarify their misleading statements, Zanmai has till 3 February 2023 (23:59 UTC) to remove the funds from the accounts that they used for WazirXs operations,” it said.

In the prior weeks, media sources indicated that there had been disagreements between the two cryptocurrency companies, with Binance requesting that WazirX remove comments made by its CEO, Nischal Shetty. They asserted that Binance owns the Indian exchange, a statement the last one made in a 2019 blog post that has apparently since been modified and altered.

What's Causing This Most Recent Flare-Up？

When Shetty maintained in his talks with Binance once more that WazirX's parent business Zanmai Labs had given ownership to the CZ-led exchange over the latter's user funds, the following incident began for a while last month. He continued by saying that Binance profited from the agreement because it took approximately $67 million out on its own as payment for providing trading services to WazirX users on its system. In a statement on February 3, Binance vehemently refuted this assertion. According to a recent independent study of WazirX's Proof of Reserves, 90% of the customer cash on the Indian exchange was kept in Binance wallets.

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