WazirX, one of India’s leading crypto exchanges, has appointed Zodia Custody as its new custodian in a strategic move to bolster its security infrastructure. This decision comes as the platform prepares to resume operations following a significant cyberattack in 2024 that resulted in the loss of assets worth approximately $234 million.
Transition to Zodia Custody
The partnership with Zodia Custody marks a pivotal step in WazirX’s recovery strategy. Zodia Custody, a digital asset custodian backed by Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD, is renowned for its robust security protocols and compliance standards. As WazirX looks to rebuild, ensuring strong asset protection is critical to regaining user trust and confidence.
Zodia Custody operates with institutional-grade security, providing fully segregated accounts, advanced key management systems, and insurance-backed asset protection. This partnership ensures that WazirX users benefit from enhanced security measures that align with global standards in digital asset custody.
In an article, Nischal Shetty, Co-founder of WazirX, emphasized the importance of this collaboration, stating, “As WazirX gears up to revive its momentum, the need for trusted partners who share our commitment to an agile and secure asset management system, combined with dependable insurance coverage, becomes urgent. We want to ensure we partner with the very best of the industry’s custody, providing solutions to build trust and confidence.”
Upcoming Creditor Voting
The announcement of the new custodial partnership coincides with the upcoming creditor voting on WazirX’s asset redistribution scheme, scheduled between March 19 and 28. The outcome of this vote is crucial for the exchange’s plans to restart operations and implement its recovery strategy. If approved, users will receive an estimated 85% of their funds within 10 business days, with further recoveries expected over the next three years.
This Restructuring Scheme not only seeks to compensate users but also aims to strengthen WazirX’s operational framework. The platform plans to enhance security, improve compliance measures, and reintroduce trading services in a phased manner after the restructuring.
Looking Ahead
WazirX’s collaboration with Zodia Custody signifies a commitment to strengthening its operational framework and safeguarding user assets. The exchange is also working on introducing new business initiatives and improved compliance policies to ensure long-term platform resilience.
As the exchange anticipates the results of the creditor voting, it continues to focus on rebuilding trust within the cryptocurrency community and ensuring a secure trading environment for its users. The partnership with Zodia Custody positions WazirX for a strong comeback, reassuring its community that user assets will be managed with institutional-grade security and transparency.
