Crypto exchange WazirX launched a Proof of Reserves (PoR) feature on its website as part of its pledge to transparency. As of October 24, WazirX’s total assets are valued at $298.17 million.
Co-founder Nischal Shetty mentioned the exchange is seeking approval to disclose the names of the third-party exchanges it uses to hold its on-chain assets.
WazirX concealed some info in its PoR disclosure
The Indian crypto exchange made its Proof of Reserves (PoR) public on its website days after promising more transparency. PoR allows users to verify wallet addresses and review asset balances.
As of October 24, WazirX’s total on-chain assets amounted to $157.01 million, with an additional $126.91 million held on third-party exchanges and no assets in third-party custody.
Based on market prices for the day, WazirX has allocated $98 million in Exchange 1, followed by $26.81 million in Exchange 2 and Exchange 3 has $2.10 million. The exchange concealed information about the exchanges’ names, but users claim the exchanges are Bybit, Kucoin, and Huobi, respectively.
Nischal Shetty, co-founder of WazirX explains that they have reached out to the three exchanges for permission to display their names. He added, “If granted, we’ll share them openly.”
Why did #WazirX hide the names of the 3rd Party exchanges ?🤨
It was showing exchange names when they published it 👇
Luckily, I took the screenshot before they change it !
1️⃣ Bybit – $98M
2️⃣ Kucoin – $26.81M
3️⃣ Huobi – $2.1M pic.twitter.com/9FNp1iwxnH— Ajay Kashyap (@EverythingAjay) October 25, 2024
The exchange has classified $14.25 million as illiquid assets, leading to a total asset balance of $298.17 million across 242,000 addresses. According to the company’s press release, it has partnered with CoinGabbar for internal and third-party PoR.
WazirX will onboard new custodians
The exchange also said that it will onboard new custodians and the PoR will be updated when that happens. The company stated, “We’re trying to find a custody provider who can offer insurance for the funds so that loss is minimized, even in worst-case scenarios.”
The exchange also sees insurance becoming crucial for custody services going forward. Around the time of the July hack, WazirX blamed the signing process used by the wallet provider Liminal for the $230 million breach. Soon after making the accusation, it migrated its funds.
In response, Liminal recently released an update calling it a “disinformation campaign.” The wallet provider explains that the majority of the 240,000 wallet addresses revealed by WazirX are independent hot wallets. The platform has also asked for a detailed post-mortem of the incident.
Notably, the exchange is now disclosing asset and wallet details as part of the legal proceedings in Singapore but the funds are still stuck in limbo.
