Crypto exchange WazirX publishes proof of reserves

WazirX app (Image: Shutterstock)

Crypto exchange WazirX published its proof of reserves on January 11th in collaboration with third-party platform CoinGabbar, revealing that it has over $286 million in holdings at the time of publishing the article.

“As per the records stated on Coin Gabbar, as on 10 January 2023, 09:46 AM, WazirX’s total crypto holdings amount to USDT 281.04 M approximately,” said the company in a blog post.

Also read: Why are Indian crypto investors asking for proof of reserve?

“We can confidently say that WazirX's asset holdings are more than that of their user’s holdings,” it added. Shiba Inu, Bitcoin, Ethereum, Dogecoin, and Polygon were among the top tokens.

Also read: CoinSwitch releases proof of reserves, reveals $131.09 million in assets

Additionally, the report indicates that 90% of its reserves are held in Binance wallets.

"90% of user assets are held in wallets at Binance, and the balance of 10% is stored in hot and warm wallets. Binance safeguards user funds by securing its platform with strict protocols and industry-leading technical measures," the company said.

Also read: Why publishing proof-of-reserves paints only half the picture of a crypto exchange’s health

The company in its post added, “From real-time monitoring and a 360-degree risk management system to advanced data privacy tools and end-user security education, they are continually committed to serving their users. Furthermore, the wallets we use are Multisig wallets. These are smart contract-based wallets. Multiple private keys are required to perform certain tasks making it near to impossible to get compromised or not accessible.”

Also read: WazirX trading volume sinks 76% to $10 billion in 2022

This comes after Changpeng Zhao (CZ), CEO of the US-based crypto exchange Binance, said that the company does not own WazirX, despite the deal being believed to have been completed in 2019. This led to a public dispute between CZ and Nischal Shetty, co-founder of WazirX.

Rivals CoinDCX and CoinSwitch have so far made their proof of reserves public following the collapse of crypto exchange FTX, which sparked discussion about the need for exchanges to be more transparent.