Global cryptocurrency exchange Binance recently stated that it would shut down the off-chain fund transfer channel between WazirX and Binance from August 11, reported Business Line.
This comes after the CEOs of both exchanges had a spat on Twitter over the ownership of WazirX. Off-chain transactions refer to those that occur on a crypto network, which move the value outside of the blockchain.
Patrick Hillmann, Chief Communications Officer, Binance, said: “In order to provide clarity and protection for users, we are removing the off-chain fund transfer channel between WazirX and Binance. Binance will cease to support off-chain fund transfers via the ‘Login with Binance’ option.”
Users, however, will still be able to deposit and withdraw balances via the standard withdrawal and deposit process between the exchanges. Hillmann clarified that funds deposited in WazirX are not managed by Binance.
“It has come to our attention that some users were given to believe that funds deposited in WazirX were managed by Binance. This is not the case,” he said.
He said the exchange will support Indian regulators in matters concerning WazirX.
Crypto traders and investors on WazirX are concerned about the safety of the funds on the platform.
They have raised queries on various platforms regarding transfer from WazirX to Binance, withdrawals and the future of WazirX’s token, WRX.
“I am concerned as to how this will pan out, and how it will affect the operations of WazirX; hence, I am even transferring my fund,” said Faizan Munshi, a crypto trader.
Some of the users have even withdrawn their funds. WazirX, however, has assured the safety of funds.
Zanmai Lab, which operates WazirX, was the subject of searches by the ED, which ordered the freezing of its bank accounts totalling ₹64.67 crore. Post this, CZ said Binance didn’t have any stake in Zanmai Labs.