The current ownership dispute between the cryptocurrency exchange WazirX and Changpeng Zhao, the creator of Binance, may soon be resolved.
The New Indian Express stated on August 11 that, according to individuals acquainted with the situation, lawyers from both exchanges are collaborating in an attempt to address this dispute.
Binance stated in November 2019 that it had acquired WazirX shortly after the Enforcement Directorate (ED) conducted searches on one of the directors of Zanmai Labs, which controls WazirX. Binance further revealed that the 2019 transaction was limited to purchasing certain WazirX assets and intellectual property.
Controversy over the operator of Wazir X
Notably, Binance did not make any equity-based investments in Zanmai Labs. WazirX remains to be handled and maintained by Zanmai Labs, according to the cryptocurrency exchange.
On the other side, Nischal Shetty, the founder of WazirX, has been alleging that Binance acquired the firm and now owns the WazirX domain name. Binance has root access to AWS (Amazon Web Services) servers, according to Shetty.
Interestingly, the two founders engaged in a public disagreement on Twitter. Zhao said that WazirX’s founding team controls the operations, including user registration, KYC, trading, and withdrawal initiation. Binance has no control over certain features of the platform. Despite our demands, this was never moved.” The transaction was never finalised, he claimed.
Founders have not reportedly communicated since February
Since February, according to the sources, none of the company’s founders has had direct contact with the other. After 2019’s failed takeover negotiations, it is thought that the current owners had planned to stay for another two years.
In February, Binance’s answer to WazirX’s question about the acquisition was that the parent company is undergoing reorganisation.
According to industry insiders, nine cryptocurrency exchanges, including WazirX, are allegedly being questioned in relation to Chinese financing applications.
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