Home Technology Investors fear loss after ED probes WazirX, many opt for withdrawal

Investors fear loss after ED probes WazirX, many opt for withdrawal

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Investors fear loss after ED probes WazirX, many opt for withdrawal

Akshay Golellu, 24, a cryptocurrency investor, has pulled his digital assets from WazirX, the largest cryptocurrency exchange in India. “I didn’t want to risk my hard-earned savings. It might only be a matter of time before we can no longer withdraw or deposit, especially with authorities taking action against the company. It sums up the sentiment of thousands of investors who are concerned that the recent action against WazirX could lead to the company shutting down withdrawal services.

On Friday, the Directorate of Execution (ED) indicated that it had frozen bank balances of Rs 64.67 crore owned by WazirX. According to the ED, Chinese loan companies that were shut down in India diverted their funds through crypto exchanges, and the maximum amount of funds was diverted to the WazirX exchange.

Users are also perplexed after a war of words took place between WazirX CEO Nischal Shetty and Binance CEO Changpeng Zhao on Twitter. Zhao clarified that he does not own WazirX, as there is “no share transfer”. However, Shetty said that Zanmai Labs, the entity that owns WazirX, has a license from Binance to mine INR-crypto pairs. Further, he stated that Binance mines crypto-to-crypto pairs and processes crypto withdrawal for the business.

“Does this mean that I cannot facilitate transactions from WazirX to Binance? Will WazirX shut down,” asked Ritesh Kavellu, 28, another crypto trader. Currently, Binance has removed the functionality allowing users to transfer their funds from WazirX to the Binance App.

Zhao tweeted, “Binance only provides wallet services for WazirX as a technology solution. There is also an integration using off-chain transactions, to save on network fees. WazirX is responsible for all other aspects of the WazirX exchange, including user registration, KYC, trading, and initiating withdrawals.

Indianexpress.com could independently verify that INR deposits and withdrawals are both available on WazirX. “We have not suspended any deposit or withdrawal services. We can guarantee that user cryptography is safe and in fact, we are the only company that has ensured that we are in full compliance with the authorities,” said Rajgopal Menon, Vice President of WazirX at indianexpress.com.

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