WazirX revealed in its proof of reserves report that 90% of its user assets are in Binance wallets. CoinGabbar published WazirX’s proof of reserves which believes that they are India’s biggest crypto exchange by volume and reserves.
Binance wallets owned 92% of user funds, $259.07 million, while other exchanges had $26.45 million. As part of that announcement, it revealed that 90% of its customer assets are stored in Binance wallets. At the time of writing, WazirX has around $280 million in stablecoin USDT user assets tied to the U.S. dollar.
The proof of reserves for WazirX was distributed by the third-party website CoinGabbar, which monitors crypto assets. When this article was written, WazirX had a total user asset value of $285 million. This value was represented by the stablecoin USDT, which is tied to the value of the United States dollar.
Binance wallets owned almost 92% of all user assets, or $259.07 million, while other exchanges held just $26.45 million of those assets.
WazirX going big
According to a post on the official WazirX blog, the total assets owned by WazirX are bigger than those held by WazirX on behalf of its customers. As a result of this, not only are they India’s top cryptocurrency exchange in terms of volume, but they are also India’s largest cryptocurrency exchange in terms of reserves.
“90% of user funds are housed in wallets at Binance, while the remaining 10% is saved in hot and warm wallets.”
The finding is crucial since WazirX co-founder Nischal Shetty and Binance CEO Changpeng Zhao (CZ) engaged in a public Twitter fight in August of last year regarding who owns WazirX.
Rajagopal Menon, vice president of WazirX, stated that even though the user assets might be stored on Binance wallets, WazirX possesses the API (application programming interface) that grants them control of the tokens. While the user assets might be stored on Binance wallets, WazirX has control of the tokens.
Shetty has said that his group has been in conversation with Binance for several months to resolve the ownership problem.
WazirX: Binance is just storage
According to Sudeep Saxena, who helped develop CoinGabbar and is also a co-founder of WazirX, “The holdings in Binance Sub-Accounts belong to WazirX solely but are held with Binance.”
Binance’s compliance with the terms of the liquidation determines whether or not these assets may be considered legitimate. This is also true for other exchanges, such as CoinDCX and SunCrypto, in which we have implemented the proof of reserve system.
Binance has stated that it does not have control over the activities and assets of its users and, as a result, is unable to verify the proportion of any of its users’ assets that are stored in wallets on Binance. However, users of Binance can rest assured that the exchange has sufficient funds to cover all of their assets in a 1:1 ratio.