Binance received all proceeds (~$2M) from the sale of the WRX token during the IEO and controls wallets with the entire issue of the asset, the Indian exchange WazirX said.
📢 Update on $WRX Token Management & Burn Clarification
Full details here https://t.co/pzhjsJCXpl
In light of recent events, we would like to clarify that Binance controls the WRX token.
Binance had conducted the IEO for $WRXand all the sale proceeds of WRX IEO (ie,… pic.twitter.com/ChZqlGuhBt
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) May 16, 2023
The platform team assured that they themselves did not receive any tokens during the distribution.
According to the statement, Binance manages a total of 580.78 million locked and unlocked WRX. Of the latter, the global trading platform transferred 116.8 million tokens in four transactions to its own treasury account. The price sagged after each operation.
Binance also oversees the issuance of WRX on schedule and is responsible for quarterly burns, most recently in March 2022.
“We hope this clarification clears up any confusion surrounding the handling of the WRX,” WazirX said.
In November 2019, Binance announced the purchase of the Indian exchange.
In August 2022, the Enforcement Department of the Indian Ministry of Finance suspected WazirX of laundering $350 million. According to media reports, the regulator froze the assets of the exchange for $8.16 million as part of the case.
Binance CEO Changpeng Zhao immediately denied the company’s connection with the platform, saying that the deal to acquire its operator Zanmai Labs was never completed. It was allegedly about the purchase of only “certain assets and intellectual property.”
WazirX co-founder Nishal Shetty confirmed that the Singapore arm had sold “technology, product, domain, brand and everything else” to Binance. According to him, this is all essentially what constitutes a crypto exchange, so Zhao’s company gained control over it. Binance managed trading, deposits and withdrawals. Only operations in the Indian rupee remained under the jurisdiction of Zanmai Labs, Shetty emphasized.
Recall that the regulator had claims against WazirX back in 2021 – the exchange was suspected of violating currency rules.
In the same year, one of the divisions of Binance came to the attention of the Anti-Money Laundering Agency of India.
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