WazirX has released a Proof of Reserves (PoR) report following a court order in Singapore, about 100 days after $234 million in assets were stolen by hackers. The report reveals that WazirX’s total assets have fallen nearly 40%, from $503.64 million in June to $298.17 million (approximately Rs. 2,506 crores).
Out of $298.17 million, the on-chain assets amount to $157.01 million, while assets held with three third-party exchanges total approximately $126.91 million. There are no assets under third-party custody. Additionally, WazirX possesses some illiquid assets valued at $14.25 million.
The breakdown of the assets with third-party exchanges is as follows:
- Exchange 1: $98 million
- Exchange 2: $26.81 million
- Exchange 3: $2.1 million
WazirX has not disclosed the names of the exchanges, but recent reports indicate that it funnelled significant amounts to ByBit, KuCoin, and HTX, with Bybit receiving the largest share, followed by KuCoin and HTX. However, as Crypto Times reports, ByBit and HTX are not recognised by the Financial Intelligence Unit (FIU), so the funds are at risk.
PoR is a critical metric for crypto platforms. It offers an audit-based snapshot that reassures users about the exchange’s ability to meet customer withdrawal demands. This report verifies that a company possesses assets equal to or greater than the amount it owes users, serving as a way to confirm the exchange’s financial solvency.
WazirX also revealed that it is actively seeking a new custody provider that will ideally offer insurance to mitigate losses in worst-case scenarios. “We are also working on onboarding new custodians and will update the PoR accordingly,” the company said, adding that enhanced custodial protection will be key to ensuring fund security and user confidence.
Following the hack, WazirX decided to halt withdrawals and introduced a ‘socialised loss strategy.’ The crypto exchange was also in talks with 11 platforms for capital support.
In the News: Landmark data breach affected 800,000 users
