Binance owns the majority of WazirX funds
WazirX revealed in its Proof of Reserves report that 90% of user assets are held in Binance wallets. CoinGabbar has published WazirX’s Guide to Reserves which it believes is the largest crypto exchange in India by volume and reserves.
Binance wallets hold 92% of user funds, $259.07 million, while other exchanges hold $26.45 million. As part of this announcement, it revealed that 90% of its clients’ assets are stored in Binance wallets. At the time of writing, WazirX has around $280 million in USDT stable user assets pegged to the US dollar.
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 pegged to the value of the US dollar.
Binance wallets hold approximately 92% of all user assets, or $259.07 million, while other exchanges hold only $26.45 million of these assets.
WazirX is getting big
According to WazirX’s official blog, the total assets owned by WazirX are greater than those held by WazirX on behalf of its clients. As a result, it is not only the largest cryptocurrency exchange in India by volume, but also the largest cryptocurrency exchange in India by reserves.
“90% of user funds are held in wallets on Binance, while the remaining 10% are held in hot and warm wallets.”
The finding is crucial since WazirX co-founder Nischal Shetty and Binance CEO Changpeng Zhao (CZ) got involved in a public Twitter fight in August last year over who owns WazirX.
Rajagopal Menon, Vice President of WazirX, stated that although user assets can be stored in Binance wallets, WazirX has an API that gives them control over the tokens. While user assets may be stored in Binance wallets, WazirX controls the tokens.
Shetty said his group has been in talks with Binance for several months to resolve the ownership issue.
WazirX: Binance is just storage
According to Sudeep Saxena, who helped develop CoinGabbar and is also a co-founder of WazirX, “The holdings in the Binance sub-accounts are solely owned by WazirX but are held by Binance.”
Binance’s compliance with the liquidation requirements determines whether or not these assets can be considered legitimate. This also applies to other exchanges, such as CoinDCX and SunCrypto, where we have implemented a Proof of Reserve system.
Binance has stated that it does not control the activities and assets of its users, and as a result, it cannot verify the percentage of any of the users’ assets stored in wallets on Binance. However, Binance users can rest assured that the exchange has enough funds to cover all of their assets at a 1:1 ratio.