In the wake of a major cyber attack that forced WazirX to suspend trading on July 22, 2024, fresh allegations have emerged against the Indian cryptocurrency exchange. Twitter user @CryptooAdy has accused WazirX of lacking transparency and potentially misleading users regarding its surplus crypto holdings. These claims have gained significant traction as the platform grapples with the fallout from the recent security breach.
@CryptooAdy’s allegations suggest that WazirX has been less than forthcoming about the amount of surplus crypto it holds beyond what is needed for daily transactions. This surplus, which acts as a financial cushion for unforeseen circumstances, is now under scrutiny as users question whether the exchange has been managing these funds responsibly. The timing of these allegations, coming on the heels of a cyber attack that compromised WazirX’s ability to maintain 1:1 asset collateralization.
The controversy gained momentum after WazirX’s June Proof of Reserves (POR) report hinted at the existence of surplus funds. Despite this, the exact details of these holdings remain undisclosed. This lack of transparency is particularly concerning in light of recent legal proceedings. An affidavit filed by WazirX in Singapore’s High Court regarding insolvency did not mention any surplus, directly conflicting with the exchange’s earlier claims.