The email obtained by WJB provides new clues to the dispute about the transparency and dispute of the ownership of WazirX, a large data encryption exchange in India.

In November 2019, the ownership of WazirX was undisputed: according to the transaction volume, Binance, the world's largest data encryption exchange, published an anecdote saying that it had invested in the Indian Exchange. WazirX executives announced and discussed the acquisition.

But this summer, when WazirX and the Indian government departments fell into a desperate situation, the situation gradually changed. At the beginning of August, WazirX's office in Mumbai was raided by senior Indian officials, suspecting that the exchange had saved 16 financial management companies from laundering money.

Binance immediately took effective measures to announce the distance from WazirX. At the beginning, the post celebrating the acquisition of Binanceblog was adjusted to buy and sell "only limited to the purchase of some assets and enterprise intellectual property agreements". On August 5, Zhao Changpeng, CEO of Binance, said on Twitter that "Binance has all the shares in Zanmai Labs, the entity line that operates WazirX.". The spokesperson of Binance told WJB that the WazirX report about Binance was a "lie"

Then, WazirX and Binance announced and discussed the issues related to the real ownership of the Indian Exchange for several months, and Binance claimed that the transaction never took place. WazirX officials said it was true - and claimed that they had evidence, although they had never introduced it.

This week, WJB obtained the relevant proof of WazirX, because this contradiction has come to an end in private.

On the morning of January 26, in fact, it was the National Day of China in India. Binance sent a letter to WazirX, stipulating that the Indian Exchange should meet the two requirements before the end of this month. Otherwise, Binance might stop the service contract with WazirX before February 3.

First of all, Binance told WazirX to publish a "response statement" prepared in advance and retrieve the previous statement of the founder of WazirX, Nischal Shetty, that Binance had WazirZ. It also stipulates that WazirX will delete all references to Binance in the terms of service.

On Friday, the official name of WazirX, Zanmai, answered Binance's request in a letter received by WJB. It launched a counterattack, claiming that the letter of regulation was "immoral", and tried to use "news media pressure threat to drive Zan Mai to publish false statements and false statements as a 'response'"

Reject cancellation

In a letter for the CEO of Binance's legal team, Shetty declined to revoke his previous statement that Binance had bought the Indian Exchange.

According to this week's letter, "Zanmai did not say that Binance's role and responsibility in the operation of the WazirX e-commerce platform, and Binance's control over the property of the WazirX customers issued all false statements or false statements.". "Zanmai transferred the control and ownership of the WazirX service platform to Binance."

In the letter, Shetty also stressed that Binance benefited greatly from its control of the exchange.

In an email for Binance, Shetty wrote: "Binance has unilaterally withdrawn a large amount of funds (more than 67 million US dollars), which should be obtained as transaction fees on the WazirX software.". "Because Binance has a WazirX wallet, Binance transfers these amounts to an internal account under its independent control."

To prove her idea, Shetty attached a part of the editing email chain, which originated on July 19, 2021, and was signed by Binance USCEOBrian Schroder and WasirX Vice President of Finance, Tushar Patel, on a newly revised "equity purchase agreement"

This document, dated January 13, 2020, granted Binance the ownership of some WazirX accounts (their true identity was revised in the WJB verification version).

"Binance's sole interest"

According to the e-mail chain, the terms of the contract allow WazirX to "browse and operate this account for the sole rights and interests of Binance" again, and Binance is designated as "a positive user of this account"

On July 28, 2021, after Patel allowed the purchase agreement, Schoder wrote: "Thank you, Tushar, we will gradually migrate the whole process and update you at any time." WJB did not see all the information behind, if any.

If WazirX does not implement Binance's requirements, the Binance request letter has been confirmed, which will effectively break the relationship between the two people.

Insiders from both exchanges said that such an outcome might destroy WazirX. According to the reserve confirmation report released by the Indian Exchange on January 11, 90% of the enterprise's consumer property was stored in Binance's manipulated wallet.

"If you have assets on WazirX, you should transfer it to Binance. It's so simple," CZ wrote on Twitter after the siege of WazirX in August.

"You can technically ban the use of WazirX wallet, but we can't/can't easily do so," he added. "Although we have been arguing, we cannot/cannot easily damage customers."

Danny Nelson reported this story.

Adjustment (02:38 UTC, January 28, 2023):The spelling of the name of Nischal Shetty was changed, and the time of the Republic of India Day was changed.