India’s top crypto exchange WazirX said Binance conducted the initial exchange offering (IEO) for its WRX token and still controls the token supply.
In a May 16 statement, the WazirX team clarified the token’s management, saying Binance kept all the proceeds from the IEO — about $2 million — for itself.
“It is important to note that the WazirX team hasn’t received any token allocations,” the team said.
WazirX said all the wallets containing locked and unlocked WRX tokens are controlled by Binance. It added that Binance held unlocked the WRX tokens in its account and that the Changpeng ‘CZ’ Zhao-led exchange conducted its quarterly burns.
Binance allegedly holds 580M WRX tokens
According to the WazirX team, Binance currently holds 580.7 million units of locked and unlocked WRX tokens — worth roughly $74.5 million at the current price of the token.
Of the unlocked tokens, Binance moved 116.8 million WRX tokens to its treasury in four transactions between April 2021 and March 2022.
WazirX added that Binance had failed to conduct any of the scheduled quarterly burns for WRX since January 2022.
“We would like to clarify that Binance is responsible for conducting the quarterly burn of WRX tokens,” it said.
On May 10, Binance moved the WRX token and 15 others to its innovation zone, citing their higher volatility and risks.
Binance has yet to respond to CryptoSlate’s request for comment as of press time.
Binance, WazirX relationship remains murky
Meanwhile, the clarification adds a further twist to the relationship between Binance and WazirX. The two exchanges have been involved in a long feud over the ownership structure of the Indian exchange.
While the WazirX team maintains that it is owned by Binance, the CZ-led firm says it only offers wallet services and tech support to the Indian exchange.
The feud culminated in the termination of their relationship in February, with Binance telling WazirX to withdraw its assets from the exchange.
Meanwhile, WRX is trading at $0.124 and has declined by over 7.1% in the past seven days, according to CryptoSlate’s data.
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