Struggling Indian crypto exchange WazirX has shared its Proof-of-Reserve (PoR) to assure customers that their remaining funds are safe and secure.
WazirX was a popular Indian crypto exchange that gained significant popularity in 2022 after Binance announced its intention to acquire WazirX in Q4 2019. However, in August 2022, a public dispute between WazirX CEO Nischal Shetty and Binance’s former CEO Changpeng Zhao (CZ) revealed that the acquisition deal was never completed. The disagreement centred on WazirX’s refusal to transfer control over its customer KYC verification system and KYC details, while Binance had control over the business operations and revenue collection.
100 days ago, WazirX was hacked, resulting in the loss of more than 50% of its customers’ funds.
Today, WazirX has released its Proof-of-Reserve (PoR), showing the following figures: Total On-chain: $157.01M, Third-party Exchanges: $126.91M, Third-party Custody: $0.00, Illiquid Assets: $14.25M, bringing the total to $298.17M.
WazirX CEO Nischal Shetty addressed the public, pointing out several key facts to quell the ongoing controversy and criticism surrounding the hack incident.
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Indian crypto influencer Aditya Singh highlighted that WazirX leadership failed to obtain customer permission before transferring funds from WazirX’s custody to other crypto exchanges that are not registered under Indian jurisdiction. WazirX is currently awaiting approval from these crypto exchanges before disclosing their names.
Singh also predicted that WazirX might not release customer funds before Q1 2025 due to their ongoing financial activities without customer consent.
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