Since the collapse of FTX, many crypto exchanges have been publishing Proof-of-reserves to demonstrate that they have enough assets to cover all the deposits made by their customers. The latest exchange to publish its Proof-of-reserves is India’s largest crypto exchange, WazirX.
CoinGabbar, a platform specializing in monitoring the movement of various crypto assets, has recently published WazirX’s Proof-of-Reserves.
According to the available data, WazirX has a total of $285 million in user assets, represented in the stablecoin USDT (Tether). USDT is pegged to the U.S. dollar, making it a suitable choice for those looking to safeguard their crypto assets against the volatility of the crypto market.
An in-depth examination of the Proof-of-Reserves data shows that WazirX has allocated a significant percentage of its user assets to Binance wallets.
Specifically, 92% of the total assets, which amounts to $259.07 million, are currently held in Binance wallets. The remaining $26.45 million is stored in other hot and cold wallets, highlighting WazirX’s diversification strategy for safeguarding its customers’ assets.
In a statement released on its blog, WazirX declared that the overall assets under its control surpass those held on behalf of its users. The exchange highlighted that this means it is not only the largest crypto exchange in India by trading volume but also by reserves.
However, it is worth noting that last year, in August, there was a disagreement on Twitter between WazirX’s co-founder Nischal Shetty and Binance’s CEO Changpeng Zhao (CZ) over who has control over WazirX.
Rajagopal Menon, the vice president of WazirX, commented on the situation, saying, “Although the assets of our users are stored in Binance wallets, WazirX retains control over the tokens through our API (application programming interface).”
According to Sudeep Saxena, the co-founder of CoinGabbar, WazirX is the sole owner of the assets held in Binance Sub-Accounts; however, these assets are kept with Binance.
He added that the validity of these holdings depends on Binance honouring the liquidation of the assets. He also stated that the same holds for other exchanges such as CoinDCX and SunCrypto, which CoinGabbar has partnered with to provide Proof-of-Reserves.
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