At WazirX, we’ve always believed that transparency is key to building and maintaining trust with our users. Today, we’re taking another step forward in that journey by sharing something important, an affidavit 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 provided to creditors in the ongoing restructuring of Zettai Pte Ltd.

Many of you may have expected a smaller number, maybe between ten to a few hundred wallets. But as part of our commitment to complete transparency, we’re here to reveal the true scale of the wallets held under WazirX. 

While this number might come as a surprise, it’s essential to remember that for an exchange like ours, handling hundreds of thousands of wallets is normal – there are approximately 4.3 million users with crypto balances, which requires a complex network of wallet addresses across different blockchains to administer and ensure a smooth experience for users.

Why Are We Sharing This Information Now?

First and foremost, this is not just about fulfilling a court requirement. We believe in proactively bringing this information to you before filing the affidavit. We don’t want there to be any surprises.

By sharing the full scope of the wallets we manage, we’re giving you an unfiltered look at the operational side of WazirX. Transparency starts with showing 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.

Managing the Wallets: Ongoing Sweeping and Consolidation

Each user can have multiple unique deposit wallet addresses which receive user crypto deposits. These deposit wallet addresses are, based on certain criteria, subject to periodic sweeping of token balances from the deposit address to cold / warm / hot wallets used operationally for aggregating token deposits and facilitating trading, among other services that a typical crypto exchange provides.

At this stage, most of the deposit wallet addresses have had their token balances swept and consolidated, leaving approximately 240,000 wallets with token balances. We are in the process of sweeping and consolidating tokens balances from the remaining deposit wallet addresses, which is a time consuming process. 

One of the key complexities here is managing the network fees involved in sweeping the wallets. Rushing the process would significantly drive up fees across networks, which is why we are taking a slow and steady approach. Our priority is to manage this process efficiently without inflating costs, ensuring your funds remain secure and your recoveries optimized.

Our Future Steps Towards Even Greater Transparency

Transparency doesn’t stop here. The next step in our journey will be introducing Proof of Reserves (POR) to further enhance trust and security in how we manage your assets. This will be possible after a comprehensive consolidation of token assets with third-party custodians and service providers. But before we get to that, we wanted to start by opening up all information around wallet balances, showing you exactly where things stand today.

We want you to know that this is all part of a larger effort to make WazirX not just an exchange but a partner you can rely on. A partner that doesn’t just meet the minimum requirements but goes beyond to ensure that our community, the WazirX family, always feels informed and secure.

Looking Forward Together

We understand that transparency isn’t just about compliance, it’s about trust. And as we continue to make progress towards consolidating these wallets and introducing new layers of accountability, we’re excited to have you with us on this journey.

Thank you for being part of WazirX, and for your patience and understanding as we continue working toward our shared vision of a truly transparent exchange.

Stay tuned for more updates as we continue to move forward.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.