Due to the FTX liquidity and bankruptcy scandal, major digital-asset service providers began publicizing their reserve funds. The latest to join the proof of reserve trend is the Indian cryptocurrency exchange WazirX.
WazirX used Coin Gabbar, a third-party crypto asset tracking platform, to display its proof of reserves. According to the data, WazirX has roughly $285 million in total user assets held in Tether 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 both hot and cold storage wallets. This amounts to roughly $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 ensured users of a more than 1:1 ratio to protect user funds in case of liquidation.
Despite being India’s largest exchange, WazirX was previously in hot water with local authorities due to money laundering charges. Funds on the exchange were frozen for just over one month during the investigation.
