After the paranoia and turmoil in the cryptocurrency industry caused by the FTX liquidity and bankruptcy scandals, major digital asset service providers in the space have started publicizing their reserves.
The latest to join the reserve trend proof is Indian cryptocurrency exchange WazirX.this announced The January 11 Transparency Act said:
“We are not only the largest cryptocurrency exchange in India by trading volume, but also the largest cryptocurrency exchange in India by reserves.”
WazirX used CoinGabbar, a third-party crypto asset tracking platform, to display proof of reserves. According to data, at the time of writing, WazirX holds approximately $285 million in total user assets represented in the Tether stablecoin (USDT).
According to the statement, 90% of WazirX’s user assets are held in Binance-based wallets, with the remaining 10% in both hot and cold storage wallets. This equates to approximately $256.5 million and $28.5 million, respectively.
The exchange said it chose Binance because of the “rigorous protocols and industry-leading technical measures” it uses to protect user funds on its platform. We have also ensured users her 1:1 or higher ratio to protect user funds in case of liquidation.
Currently, Shiba Inu (SHIB) accounts for over 19% of the exchange’s holdings, followed by Ether (ETH) at 9.37%, Bitcoin (BTC) at 8.28%, and Dogecoin (DOGE) at 8.18%.
Related: Indian Exchange WazirX Follows Binance in USDC Delisting
Despite being India’s largest exchange, WazirX has previously been sued by local authorities for money laundering charges. During the investigation, the exchange’s funds were frozen for just over a month.
It was around this time that Binance publicly distanced itself from the exchange via a tweet from Binance founder Changpeng CZ Zhao.
Additionally, Binance has sided with local authorities by removing off-chain fund transfers using WazirX during the investigation.
Binance was the first exchange to release evidence of a reserve scheme after the FTX turmoil, which later caused other exchanges Domino to do the same.