WazirX Asset Rebalancing: $200M Wallet Activity Sparks Binance Theories

• WazirX is securing assets with cold wallet transfers before the final distribution.
• $200 million transfer sparks speculation about Binance’s role in WazirX’s recovery.
• WazirX plans to distribute funds in crypto tokens, not fiat, after rebalancing.

WazirX has given its users an update on its asset rebalancing. This comes after concerns about unexpected wallet movements. The exchange said the transfers between cold storage wallets are temporary. They aim to secure assets before their final distribution.

Update on Asset Rebalancing

We are currently in the process of rebalancing tokens. As part of this, you may notice fund movements between various cold wallets. The temporary consolidation of assets is a necessary step before final allocations to secure cold wallets.

Once the… pic.twitter.com/JdJPCeI3Rs

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia)
December 13, 2024

WazirX said that once the rebalancing is done, all cold wallets and tokens will be public. The update addressed concerns about the wallet activity and assured users that their funds are safe. 

This announcement comes after the WazirX hack, which cost $235 million in digital assets. The breach has sparked discussion about security in the crypto market.

Read also : WazirX Founder Confirms Asset Distribution Will Be in Tokens, Not Fiat or USDT

Affected users have been frustrated, of late, since the hack happened during a bull run, stopping them from taking advantage of the price surge.

A $200 Million Fund Movement and Binance’s Role

Recently, WazirX saw speculation build up after $200 million in digital currencies moved from Binance and WazirX wallets. On-chain experts noticed the transaction. This led to theories that Binance might help WazirX, perhaps to repay users affected by the hack.

Some social media users said this could be part of a recovery deal between the two exchanges, maybe in exchange for equity or token-based compensation.

Source:
X

The movement involved sending funds to a WazirX wallet. This wallet held unclaimed user funds from the hack, consolidated two months ago. The $200 million came from wallet 0xb03, believed to be funded by Binance, into wallet 0x305, allegedly controlled by WazirX.

WazirX’s Response and Restructuring Plans

Nischal Shetty, the founder and CEO of WazirX, talked about the reforms and explained the asset distribution. Shetty confirmed that the exchange will give funds to users through crypto tokens, not fiat currency or stablecoins.

As WazirX continues its asset management, users need to be patient and wait for updates. The exchange said it will share the final steps of the rebalancing when finished, providing transparency about the funds.

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