WazirX Piles the Largest Reserves for User Assets
A recent audit of WazirX operations revealed that the crypto exchange has the largest volume of transactions. The report showed that WazirX had accumulated the largest reserves for the users’ assets.
The proof of reserves assessment demonstrated that the holding of 90% of the crypto assets is within Binance wallets.
Third-Party Assessment of WazirX Reserves
The audit of wazirX completed by CoinGabbar, a third-party firm specializing in tracking crypto assets, indicated the India-based exchange users’ assets are estimated at $285 million. The audit showed the reserves were held in stablecoin USDT. An estimated 92% translating to $259.07 million, were the Binance wallets. The remaining 8%, amounting to $26.45 million, is distributed in other exchanges.
The crypto assets’ holdings belonging to WazirX surpass those held by the exchange on behalf of the users. The reserves cement WazirX’s leadership in transaction volume and securing the users’ funds. The report indicated that close to 10% balance is within the hot and warm crypto wallets.
Ownership Tussle with Binance
The disclosure of the reserves pile echoes the August position that triggered a public spat between Binance’s chief executive Changpeng Zhao and WazirX co-founder Nischal Shetty. The Twitter spat involved proving who controls India’s largest crypto exchange.
The latest revelation of Binance’s wallet dominance in the custody of reserves is yet to reignite the control debate. Wading into the debate, WazirX vice president Rajagopal Menon indicated that while users’ assets are within Binance wallets, WazirX retains the application programming interface. The arrangement enables WazirX to exercise control over the assets.
The debate over ownership is inevitable to reignite. While admitting this possibility, Shetty revealed holding talks with Binance to resolve the ownership tussle.
Publishing Reserve Holdings
CoinGabbar co-founder Sudeep Saxena clarified that WazirX, not the former, owns the crypto assets held at the Binance subaccounts. Saxena noted that the validity of the reserve holdings relies upon Binance approving the liquidation request. He added a similar arrangement exists in other holdings distributed to SunCrypto and CoinDCX exchanges.
The report illustrated that 19% of users’ funds are in the form of Shiba Inu (SHIB), with Ether holdings are 9.37% and Bitcoin (BTC) account for 8.28%.
Releasing proof of reserve audits’ findings is a common phenomenon among crypto trading platforms. The trend differs from the FTX saga days when the majority declined to publish the fund reserves’ details.
Editorial credit: ECO LENS / Shutterstock.com
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