WazirX releases proof of reserves with majority of funds in Binance wallets

After the paranoia and turmoil in the crypto industry caused by the FTX bankruptcy and liquidity scandal, major digital asset service providers in the space began posting their reserve funds.

The last to join the reserve test trend is the Indian cryptocurrency exchange WazirX. That Announced its transparency act of January 11 stating that:

“We are not only the largest cryptocurrency exchange in India by volume, but also the largest cryptocurrency exchange in India by reserves.”

WazirX used CoinGabbar, a third-party crypto asset tracking platform, to show its proof of reserves. According to the data, WazirX has approximately $285 million in total user assets displayed in the Tether stablecoin (USDT), at the time of writing.

According to the statement, 90% of user assets on WazirX are held in Binance-based wallets, with the remaining 10% stored in hot and cold storage wallets. This equates to approximately $256.5 million and $28.5 million, respectively.

The exchange said it chose Binance because of the "strict protocols and industry-leading technical measures" it uses to safeguard user funds on its platform. It also guaranteed users a ratio of more than 1:1 to protect user funds in case of liquidation.

Currently, more than 19% of the stock's holdings are in Shiba Inu (shib), followed by 9.37% in Ether (ETH), 8.28% in Bitcoin (BTC) and 8.18% in DogeCoin (DOGE).

Related: Indian exchange WazirX follows Binance in delisting USDC

Despite being the largest exchange in India, WazirX was previously in trouble with local authorities. on money laundering charges. Funds on the exchange they were frozen for a little over a month during the investigation.

It was during this time that Binance publicly distanced itself of the exchange via a tweet from Binance founder Changpeng CZ Zhao, who said he has no ownership of the exchange.

Also, Binance sided with local authorities during the IP by eliminating off-chain fund transfers with WazirX.

Binance was the first exchange to advertise your booking test FTX's post-shake scheme, which then caused a domino series of other exchanges to follow suit.