WazirX, a once-popular Indian crypto exchange, has recently faced challenges that have shaken customer trust. After a public dispute between WazirX CEO Nischal Shetty and Binance’s former CEO Changpeng Zhao (CZ) revealed that the acquisition deal with Binance was never completed, the exchange experienced a major hack 100 days ago that resulted in the loss of more than 50% of its customers’ funds.
To address the concerns of its customers, WazirX has shared its Proof-of-Reserve (PoR) to demonstrate that the remaining funds are safe and secure. The PoR dashboard shows a total of $298.17M in assets, with breakdowns for on-chain funds, third-party exchanges, and illiquid assets. This transparency is a step towards rebuilding trust in the exchange.
In a public statement, CEO Nischal Shetty emphasized the importance of transparency and stated that WazirX is committed to becoming the most transparent exchange. He also announced that a third-party platform, Coingabbar, will soon display the PoR as well, adding an extra layer of credibility to the information provided.
However, Indian crypto influencer Aditya Singh raised concerns about WazirX’s financial activities, noting that the exchange transferred funds to global exchanges without obtaining customer permission. Singh also predicted that WazirX may delay releasing customer funds until Q1 2025 due to these actions.
Despite these challenges, WazirX is taking steps to address the issues at hand and rebuild trust with its customers. The release of the PoR is a positive sign of the exchange’s commitment to transparency and security. As the crypto industry continues to evolve, exchanges like WazirX will need to adapt and prioritize the protection of customer funds to maintain their reputation in the market.