WazirX, a leading crypto exchange in India, has taken a significant step toward increasing transparency by disclosing the details of approximately 240,000 wallets with balances. The crypto exchange is trying to win its user base’s trust back after the $230 million hack fiasco on July 18, 2024. This move comes in the midst of the ongoing restructuring process of Zettai Pte Ltd, as outlined in a new blog published by the company.
WazirX’s Wallet Disclosure
The crypto exchange has submitted an affidavit detailing these wallets to the High Court of Singapore, fulfilling a legal requirement. According to WazirX, the disclosure is part of a broader effort to enhance transparency and trust among its user base. The company has stated that it is committed to making its operations more open and accountable to its users.
Nischal Shetty, the founder of WazirX, commented on the development via his post on X (formerly Twitter). He stated, “Details of the wallet disclosure are in this blog. We’ll also share the affidavit submitted today. The next step in this direction is POR for tokens. We’re working towards it and will share as soon as it’s ready.”
Contrary to what some users may have anticipated, WazirX disclosed a significantly larger number of wallets than expected. Many had assumed that the number would range from a few dozen to a few hundred, but the company revealed a total of around 240,000 wallets with balances.
Details of the wallet disclosure are in this blog. We’ll also share the affidavit submitted today.
The next step in this direction is POR for tokens. We’re working towards it and will share as soon as it’s ready 🙏❤️https://t.co/6WISYw8cL1 pic.twitter.com/6e4w66ZZS7
— Nischal (Shardeum) 🔼 (@NischalShetty) October 17, 2024
These wallets form part of the wider network supporting the platform’s 4.3 million users with crypto holdings. Moreover, it’s worth noting that WazirX manages these wallets across multiple blockchains, ensuring smooth operations for its users.
The blog post further explained that each user can have multiple deposit addresses for receiving crypto. Also, the Indian exchange is actively engaged in the process of sweeping and consolidating balances from these deposit addresses into cold, warm, and hot wallets. The company noted that sweeping these balances is a time-intensive process, largely due to the network fees involved.
Thus, WazirX is taking a careful and deliberate approach to avoid inflating transaction costs while maintaining the security of users’ funds. The exchange emphasized that the wallet disclosure was not solely a legal requirement but also a proactive decision to provide users with a clear understanding of its operational processes.
Proof-of-Reserves Announcement
The company also intends to continue this transparency initiative by introducing Proof of Reserves (POR) in the near future. This step will be taken after completing the consolidation of token assets with third-party custodians, further demonstrating the exchange’s commitment to trust and security.
WazirX assured its users that the current wallet disclosure is just the beginning of a plan to enhance transparency. By providing a full picture of the wallets and token balances under its management, the exchange aims to build confidence and strengthen relationships with its user community.
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Source: https://www.cryptonewsz.com/wazirx-discloses-wallets-user-trust-hack/