In a recent statement, WazirX, India’s leading cryptocurrency exchange, has alleged that Binance, a prominent global exchange, conducted the initial exchange offering (IEO) for WazirX’s WRX token and continues maintaining control over the token supply. According to WazirX, Binance retained all the proceeds from the IEO, which amounted to approximately $2 million.
Emphasizing the situation, the WazirX team clarified that they had not received any token allocations, and all wallets containing locked and unlocked WRX tokens are under the control of Binance.
Furthermore, WazirX stated that Binance held unlocked WRX tokens in its account and conducted quarterly token burns as per its practice. Binance currently holds 580.7 million units of locked and unlocked WRX tokens, valued at around $74.5 million based on the current token price.
WazirX revealed that Binance transferred 116.8 million WRX tokens to its treasury in four separate transactions out of the unlocked tokens between April 2021 and March 2022. Concerningly, WazirX also noted that Binance has failed to conduct any of the scheduled quarterly token burns for WRX since January 2022, raising further questions regarding the management of the token supply.
A long-standing dispute over the ownership structure of the Indian exchange has marred the relationship between Binance and WazirX. While WazirX claims to be owned by Binance, the latter maintains that it only provides wallet services and technical support to WazirX.
This feud escalated in February, resulting in the termination of their relationship, with Binance instructing WazirX to withdraw its assets from the exchange.
On May 10, Binance transferred the WRX token and 15 other cryptocurrencies to its innovation zone, citing higher volatility and associated risks.
The latest allegations from WazirX shed further light on the intricate dynamics between the two exchanges, deepening the complexities surrounding the ownership and control of the WRX token. It remains to be seen how this situation will unfold and whether any resolution can be reached between the parties involved.