Indian cryptocurrency exchange WazirX has released proof of its reserves report, revealing that 90% of user assets are held in Binance wallets.
CoinGabbar, a third-party cryptocurrency tracking platform, has released WazirX margins. As of this writing, WazirX has a total user asset of $285 million, denominated in the form of the USD pegged stablecoin USDT. Of total user assets, approximately 92% or $259.07 million was held in Binance wallets and $26.45 million was held in other exchanges.
“The total assets held by WazirX are greater than the assets held by WazirX on behalf of its users,” said WazirX’s blog. “This makes us not only the largest cryptocurrency exchange in India by trading volume, but also the largest cryptocurrency exchange in India by reserves.”
“90% of user funds are held in Binance wallets, with the remaining 10% in hot and warm wallets,” added WazirX.
The revelation is significant, as last August, WazirX co-founder Nischal Shetty and Binance CEO Changpeng Zhao (CZ) quarreled on Twitter about who controls WazirX.
“User funds may be in Binance wallets, but WazirX has an API (application programming interface) that allows you to control your tokens,” said Rajagopal Menon, Vice President of WazirX.
Shetty previously said his team has been in talks with Binance for several months to resolve the ownership issue.
CoinGabbar co-founder Sudeep Saxena said, “Binance Sub-Accounts holdings belong solely to WazirX, but are stored on Binance. It’s up to you to respect it.The same is true for other exchanges including CoinDCX and SunCrypto, for which proof of reserves is integrated.”
Binance did not immediately respond to a request for comment.
At the time of writing, over 19% of WazirX user funds, the highest amount of a single token, are in the form of Shiba Inu (SHIB), while Ether (ETH) and Bitcoin (BTC) holdings are 9.37% and 8.28, respectively. %.
Some of India’s most prominent cryptocurrency trading platforms have now published proof of their reserves reports, but just days after the FTX turmoil, they were asked if they would publicly disclose their fund reserves. When asked, most people declined to comment or did not respond to requests for comment. “Merkle Tree” proof of reserves.
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