Proof of Reserves or Proof of Risks: WazirX Gambles with User Funds
WazirX has put Rs 1067 crore of remaining user funds into unregistered foreign exchanges without taking users' permission.
WazirX management has published its long-awaited Proof of Reserves (PoR) of its available customer balance post the Rs 2000 crore hack. Acting on the directions of Singapore Court, the exchange management released funds bifurcation data which showed that at least Rs 1067 crore ($126.91 Million) of user funds have been sent to three different exchanges- Bybit, Kucoin and HTX, post the hack.
Out of the three exchanges, ByBit has Rs 824.03 crore ($98 Million), Kucoin has Rs 225.4 crore ($26.81 Million) and HTX has Rs 17.65 crore ($2.1 Million). It is imperative to note that out of the three exchanges- ByBit and HTX are not recognized by the Financial Intelligence Unit (FIU) – India and users’ funds are at risk, in case of another cyber attack on these two exchanges.
Source: XWazirX had not informed its users before moving their funds to different exchanges. These findings have reignited concerns over crypto exchanges storing user funds outside their native jurisdiction, raising eyebrows over how funds are handled and safeguarded.
Notably, the top ten wallets reflect significant allocations across multiple cryptocurrencies: $77.39 million in Bitcoin (BTC), $26.65 million in TRON (TRX), $22.53 million in Binance Smart Chain (BSC) assets, $5.96 million in Ethereum (ETH), $2.52 million in XEC, $2.35 million in Polkadot (DOT) and others in smaller amounts like $2.52 million including Ethereum Classic (ETC) and $2.05 million in Internet Computer Protocol (ICP).
Meanwhile, Nischal took to X to claim that WazirX exchange is on its way to become the “most transparent exchange” and the PoR should end all speculations about crypto balances of the exchange.
Meanwhile, the statement by Nischal hardly had any soothing effect on users and crypto influencers as many questioned the decision to transfer user funds to foreign exchanges that are banned in India from operating.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BERAUSDT now launched for futures trading and trading bots
US watchdog lodges complaint with DOJ, OGE over President Trump's official memecoin
Public Citizen has complained to the DOJ and OGE, calling for an investigation into President Trump over alleged federal violations related to his official memecoin launch.Federal law strictly regulates payments to government officials and bars gift solicitation, the watchdog said.
Ondo Finance expands onchain offerings with new Layer 1 blockchain
Franklin Templeton, Wellington Management and WisdomTree, among others, will advise on the design of Ondo Chain.Ondo Finance on Tuesday launched Ondo Global Markets, designed to open onchain exposure to stocks, bonds and ETFs.
BNB Chain's test memecoin surged to a $52 million market cap minutes after CZ posted about it
A BNB Chain test memecoin (TST) soared to a $52 million market cap within minutes of Changpeng “CZ” Zhao’s X post mentioning “happy trading!”Zhao clarified that TST is not an official BNB Chain token and that no one from Binance holds it.