Delhi High Court orders WazirX to disclose Binance acquisition details

The Delhi High Court has directed Zettai, the Singapore-based entity of crypto exchange WazirX, to provide details of its acquisition by global crypto platform Binance.

 

The court has also ordered the company to disclose details of the ongoing restructuring proceedings before the Singapore High Court, as per its order dated August 5. The restructuring is part of the alleged security breach on WazirX that resulted in losses exceeding $230 million, almost a year ago.

 

“...respondent Zettai Pte Ltd (formerly Zanmai Pte Ltd) is directed to produce a copy of its agreement with ‘Binance’,” the court directed.

 

The next date for the court’s hearing on the matter is scheduled for August 26.

   

The court has asked concerned officials of the Reserve Bank of India (RBI) to remain present in the court or join the proceedings virtually on the next date of hearing.

 

This order comes at a time when the revoting on an amended scheme of arrangement was completed by WazirX on Thursday.

 

WazirX did not respond to Business Standard’s request for a comment. 

 

“The order directs the document through which Binance acquired the WazirX platform—whether it was Zettai or Zanmai—needs to be brought on record. The document has to be furnished to the Hon’ble judge on the next date of hearing,” said Navodaya Singh Rajpurohit, legal partner, Coinque Consulting, and founder, Pravadati Legal; the legal counsel for both the petitioners.

 

Last year, Binance distanced itself from any liabilities originating from an alleged cyber attack on WazirX while clarifying that the company does not own or operate WazirX in the country.

 

It refuted WazirX’s claims that the global exchange owns the company, stating that it does not operate the platform.

 

In 2019, the global crypto platform had announced that it had ‘acquired’ WazirX. However, it later stated that the acquisition was limited to an agreement to purchase some assets and intellectual property of WazirX.

 

“Binance operated the token-related services while Zanmai India operated the INR-related services. Binance subsequently announced its decision to cease providing services in relation to the platform,” Nischal Shetty, founder and chief executive officer (CEO), WazirX, had declared in one of the affidavits last year.

 

However, Binance had clarified that it does not provide any services on the WazirX platform.