WazirX reserves total $298.17M, reports 41% decline from June
WazirX published the proof of reserve days after the digital asset custody platform Liminal Custody criticised the crypto trading platform for lacking transparency.
WazirX reported on Friday a 41% decline in its total reserves as of October 24, compared to when it published its last report in June before the cyberattack that saw $234 million worth of crypto assets stolen.
As of October 24, the company has a total holdings of $298.17 million. In June, the company had a total holdings worth $503.62 million.
In its latest report, WazirX did not disclose its reserves-to-liabilities ratio, which would help understand whether the exchange has sufficient funds to meet the user’s needs in unforeseen scenarios. Most crypto exchanges maintain a reserve-to-liabilities ratio exceeding 1:1.
On October 22, Liminal Custody, a digital asset custody platform, accused WazirX in a post on X saying the company continues to use the platform even after criticising it publicly and blaming the platform for the breach.
“Despite claims of terminating the relationship in the media, WazirX continued using Liminal’s infrastructure for months. Until October 3rd (~75 days after the incident), WazirX continued to access over $175 million in assets via our infrastructure. Till date, $50M of WazirX funds remain on Liminal wallets,” the post read.
WazirX is currently considering a range of options in the aftermath of the cyberattack, it said in a media town hall last month.
In August, Zettai Pte Ltd, the parent entity of Zanmai Labs that operates WazirX in India, filed an application with the High Court of Singapore for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act, 2018.
The court granted the company a four-month moratorium earlier this month allowing it to roll out a restructuring process to partially pay back funds to affected users.
Edited by Suman Singh