WazirX Founder Tweet Clarifying $75M Transfer To Bybit And Kucoin

WazirX Founder Defend Early Moves as $75M Transfer Sparks Controversy

WazirX founder Nischal Shetty announced the platform's latest Proof of Reserves (POR) efforts, detailing the movement of $75 million into Bybit and KuCoin, and providing transparency by sharing over 240,000 wallet addresses to ensure user confidence.

WazirX Founder Nischal Shetty's Words on WazirX Latest Move

In a recent Twitter announcement, WazirX founder Nischal Shetty addressed the platform's ongoing steps to enhance transparency with its users. Shetty explained the current focus on Proof of Reserves (POR) and how the team is diligently working to provide a consolidated view of all token holdings. This process involves pulling data from multiple wallets and displaying balances for everyone to see, reinforcing WazirX's commitment to being transparent with users.

Shetty also revealed that WazirX shared over 240,000 wallet addresses to built trust, but the platform is now tasked with consolidating this data to give a clear picture of all holdings. 

While the main goal is to show the total balances for these unswept wallets, it will be challenging due to the large volume of data involved. For now, WazirX will start by displaying overall balances to keep the information manageable for users.

What Could Be the Reason Behind?

The decision to move $75 million to exchanges such as Bybit and KuCoin has sparked concerns among some users, who feared the funds were being used for trading purposes. 

However, Shetty clarified that these funds were transferred because the platform is still in the process of onboarding a custodian that can manage all tokens. While the team has spoken to five different custody providers, none support all tokens, which has led to the use of third-party exchanges to hold these funds temporarily. 

This is not an indication of trading but a necessary step to ensure the safety of user funds until a more comprehensive custody solution is in place.

The flip side of the coin

However, Some users suspect that WazirX transfer of $75 million to Bybit and KuCoin may not be as transparent as claimed. Critics argue that the platform could be using these funds for trading or other undisclosed activities, and that Nischal Shetty's explanation may be an attempt to downplay concerns. 

The ongoing legal troubles and delayed custodian onboarding raise doubts about WazirX’s true intentions, leaving users questioning the safety and management of their assets.

Conclusion

WazirX remains committed to transparency, despite challenges in onboarding a custodian. The team is working hard to provide clear POR updates and reassure users. Shetty urged the community to avoid falling into fear and uncertainty, promising continuous updates on progress.

Read More: WazirX to Disclose Wallets in Court Amid 4-Month Moratorium