​Indian crypto exchange WazirX accuses Binance of withholding proceeds from the sale of the WRX token

What’s new? Representatives of the Indian trading platform WazirX said that Binance controls the WRX exchange token and also retains all of the proceeds from the initial exchange offering (IEO) of the asset in BNB coins worth about $2 million. They added that Binance currently has a total of 580,78 million WRX in its possession, 93,6% of which is locked in a dedicated wallet, and the WazirX team has not received a single token.

WazirX’s statement

What else is known? WazirX stressed that Binance has full control over the WRX token and all wallets that hold blocked and issued tokens. Meanwhile, of the unlocked tokens, Binance has transferred 116,8 million WRX (11,68% of the total supply) to its account.

According to WazirX, Binance is also responsible for conducting quarterly token burning, but for the past five quarters (since January 2022), the exchange has not conducted these actions.

Cryptocurrency burning is the process of removing a certain number of tokens from circulation, after which they become permanently inaccessible. Often burning is carried out in order to increase the rate of an asset or prevent it from inflation. Burning can be done by sending tokens to a wallet without a private key, by conducting a hard fork, using special software, or using algorithms that destroy some of the funds during transactions.

Representatives of the Indian platform added that the clarification is intended “addresses any confusion surrounding the management of WRX.”

WazirX situation. In August 2022, the Indian authorities launched an investigation into WazirX on suspicion of laundering $350 million. Binance CEO Changpeng Zhao later denied allegations that the company was involved in money laundering on the exchange. According to him, Binance has no financial ties with WazirX and has no capital in its parent company Zanmai Labs. Zhao also said that Binance does not control the accounts of users of the Indian exchange, but only provides its infrastructure.

Binance CEO refuses to return the Mithril deposit and reveals the conditions of delisting from the exchange

The platform has the right to withdraw funds for listing in case the price of an asset falls below a certain level or due to risks for users

Read further

In February 2023, Binance demanded an urgent withdrawal of WazirX customers’ assets from their wallets. The decision was intended to eliminate the risk of losing customer assets if the companies stopped cooperating.