Indian cryptocurrency exchange WazirX has recently released its proof-of-reserves (PoR) report, shedding light on the storage of customer assets. According to a statement on October 25th, over 40% of customer assets are held on third-party exchanges.
The exchange has introduced a PoR dashboard to enhance transparency by allowing independent verification of wallet addresses and precise asset holdings. As of October 24th, WazirX holds a total of $298.17 million across 242,000 wallets. Out of this amount, $157.01 million is held on-chain, $126.91 million is stored on external exchanges, and no assets are in third-party custody. Additionally, the exchange maintains $14.25 million in less liquid assets.
WazirX has strategically placed funds with undisclosed exchanges, with $98 million deposited in “Exchange 1,” $26.81 million in “Exchange 2,” and $2.10 million in “Exchange 3.” While the specific names of these platforms were not revealed, speculation within the crypto community suggests they could be Bybit, KuCoin, and Huobi. Co-founder Nischal Shetty expressed the exchange’s willingness to disclose the names upon permission from the respective exchanges.
Among WazirX’s holdings, the most valuable asset is 1140 BTC, valued at $77.9 million. Additionally, the exchange holds $26.7 million in assets on the Tron blockchain, including $14.7 million in TRX and $1.6 million in Tether’s USDT stablecoin.
In response to the need for enhanced security and customer protection, WazirX is in the process of securing a new third-party custodian that provides fund insurance. Following a cyberattack in July that resulted in a loss of $235 million in client funds, the exchange terminated its relationship with the previous custodian, Liminal. WazirX emphasized the importance of fund insurance for risk management in digital asset custody and stated its commitment to minimizing losses even in worst-case scenarios.
While Indian rupee withdrawals have resumed, crypto withdrawals remain suspended as WazirX continues to consolidate reserves and restore full access. The exchange is actively collaborating with government agencies, including the Financial Intelligence Unit, to investigate the cyberattack and recover assets.
Overall, WazirX’s PoR report and efforts to enhance security and transparency demonstrate its commitment to safeguarding customer assets and rebuilding trust in the wake of the recent breach.