New Delhi, Aug 10 (IANS): Homegrown cryptocurrency exchange WazirX has witnessed a sharp 50 per cent drop in trading on its platform, while its WRX crypto token nosedived from Rs 23 per coin earlier this month to Rs 17 on Wednesday, as the row between Nischal Shetty-run crypto platform WazirX and Changpeng Zhao-run Binance deepened.

In the last seven days, WazirX's trading volumes have sunk by over 55 per cent -- from $4.3 million on August 5 to $2 million on August 9.

WazirX, which has nearly 15 million users and is India's biggest crypto exchange, is in the thick of a controversy since the Enforcement Directorate (ED) raids at its parent company, Zanmai Labs.

The ED raids resulted in Zhao-run Binance disowning WazirX, which it apparently acquired on November 21, 2019.

Zanmai Labs said in its latest statement that it has fully cooperated with the ED and WazirX is a platform co-operated by Zanmai Labs Pvt Ltd (Zanmai Labs) and Binance.

"The ED appears to be investigating the transactions of certain users and Zanmai Labs has no affiliation to such users and is unaware about the purpose of their transactions," said the company.

After the ED raids on Zanmai Labs, Binance first disowned WazirX, and then said that it is removing the off-chain fund transfer channel between WazirX and Binance.

Zanmai Labs said that there seems to be a major misunderstanding about off-chain transactions between WazirX and Binance.

"Off-chain transactions between WazirX and Binance can only be done by a user between his/her/its own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well (and have been submitted to the ED when requested)," it argued.

WazirX is the largest crypto exchange in India and its annual trading volume exceeded $43 billion in 2021.