Indian cryptocurrency exchange, WazirX has published its proof-of-reserve in a bid to regain users’ trust. As revealed, about 90% of users’ assets on the cryptocurrency exchange are held on Binance-base wallets.
Further indications revealed that 10% of users’ assets on the cryptocurrency exchange are on hot and cold wallets. In total, WazirX proof-of-reserve contains assets worth about $285 million. According to a blog post, the cryptocurrency exchange said it has more than a 1:1 ratio in safeguarding users’ assets against liquidation.
Additionally, WazirX disclosed that the majority of its assets on Binance are due to its trust in the competence of the cryptocurrency exchange. The Indian-based cryptocurrency exchange said Binance’s strict protocols and industry-leading technical measures are reliable in protecting assets on its platform.
The cryptocurrency exchange employed the services of CoinGabbar to publish its PoR. CoinGabbar is a third-party crypto asset monitoring platform. The majority of the assets on WazirX PoR were displayed in USDT. Likewise, over 19% of the exchange’s holdings are in Shiba Inu, with ETH covering 9.37%, BTC at 8.28% and DogeCoin at 8.18%.
How WazirX and Binance executives were at loggerheads over money laundering allegations
In August, a fracas ensued between the Co-Founder of WazirX, Nishcal Shetty, and Binance CEO Changpeng Zhao (CZ). The argument focused on the ownership of WazirX after the Enforcement Directorate of India seized the assets of the exchange over money laundering allegations.
Then, the ED said the cryptocurrency exchange aided some loan app firms to launder money. Due to that, Binance distanced itself from the cryptocurrency exchange despite announcing a takeover deal with WazirX some years back. The CEO divulged that WazirX doesn’t belong to Binance as popularly established by some media outlets. Consequently, the revelation sparked the fury of WazirX co-founder Nischal Shetty.
Thereafter, the ED unblocked accounts of the cryptocurrency exchange in September 2022. As reported by Binbits, WazirX distanced itself from the organizations under the watch of the regulator, citing that it’s willing to cooperate with proceedings of the investigation.
Meanwhile, the cryptocurrency exchange has mostly found itself in controversial issues involving Indian Authorities. In January 2022, WazirX landed in trouble with the India Tax department for evading tax of $5.43 million. Upon the completion of its investigation, the tax authority fined WazirX about $6.6 million.