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At WazirX, we have always believed that transparency is essential to building and maintaining trust with our users. Today, we’re taking another step forward in that journey by sharing something important, a certificate that includes the details of approximately 240,000 wallets with balances. This affidavit will be filed with the High Court of Singapore today as directed, and will also be issued to creditors during the ongoing restructuring of Zettai Pte Ltd.
Most of you can expect a smaller number, maybe ten to a few hundred wallets. But as part of our commitment to complete transparency, we are here to reveal the true size of wallets held under WazirX.
While this number may come as a surprise, it is important to remember that it is normal for an exchange like ours to handle hundreds of thousands of wallets; there are approximately 4.3 million users with crypto balances, which requires a complex network of wallet addresses across different blockchains. manage and ensure a smooth user experience.
Why are we sharing this information now?
First of all, it is not just about the execution of a court order. We believe we will proactively bring this information to you before submitting the affidavit. We don’t want any surprises.
By sharing the full range of wallets we manage, we give you an unfiltered look at the operational side of WazirX. Transparency starts with telling you everything, even if that means sharing what might seem like overwhelming data. This is the first step in a broader effort to become one of the most open and trusted exchanges.
Management of wallets. continuous cleaning and consolidation
Each user can have multiple unique deposit wallet addresses that receive the user’s crypto deposits. These deposit wallet addresses, based on certain criteria, are subject to periodic clearing of token balances from the deposit address to cold/hot/hot wallets, which are operationally used to aggregate token deposits and facilitate trading, among other services provided by a conventional crypto exchange.
At this stage, the token balances of most deposit wallet addresses were purged and consolidated, leaving around 240,000 wallets with token balances. We are in the process of cleaning and consolidating the token balances from the remaining deposit wallet addresses, which is a time-consuming process.
One of the main complications here is managing the network fees involved in clearing the wallets. Rushing the process will significantly increase fees on the networks, which is why we take a slow and steady approach. Our priority is to manage this process efficiently without inflating costs, ensuring that your funds remain safe and recoveries are optimised.
Our future steps towards greater transparency
Transparency does not stop here. The next step in our journey will be the introduction of Proof of Reserves (POR) to further strengthen confidence and security in managing your assets. This will be possible after comprehensive consolidation of token assets with third-party custodians and service providers. But before we get to that, we wanted to start by revealing all the information about wallet balances, showing you where things stand today.
We want you to know that this is all part of a larger effort to make WazirX more than just an exchange, but a partner you can rely on. A partner that not only meets the minimum requirements, but also goes above and beyond to make our community, the WazirX family, feel informed and safe at all times.
We look forward together
We understand that transparency is not just about compliance, it’s about trust. And as we continue to make progress on consolidating these wallets and introducing new layers of accountability, we’re excited to be with you on this journey.
Thank you for being a part of WazirX and for your patience and understanding as we continue to work towards our shared vision of a truly transparent exchange.
Stay tuned for more updates as we continue to move forward.
Disclaimer: Cryptocurrency is not legal tender and is currently unregulated. Please ensure that you carry out a sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information presented in this section does not represent any investment advice or the official position of WazirX. WazirX reserves the right, at its sole discretion, to modify or amend this blog post at any time and for any reason without prior notice.
