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Crypto Exchange WazirX Seeks New Custodian to Enhance Security and Minimize Risk
Indian cryptocurrency exchange WazirX is actively seeking a new custodian partner that can provide insurance for user funds. This move aims to bolster security as the platform works to restructure operations following a significant cyberattack in July.
Proof of Reserves Now Live
In line with its commitment to transparency, WazirX has launched a dual proof-of-reserves dashboard, developed in collaboration with research marketplace CoinGabbar. This feature allows users to independently verify wallet addresses and review asset balances.
Importance of Insurance in Crypto Custody
In a blog post dated October 24, WazirX emphasized the need for a custody provider who can offer insurance for user funds. The exchange stated, “While security is paramount, in this dynamic and new world of crypto, insurance will start playing an even more important role in custody services.”
Rebuilding Trust After Cyberattack
The platform’s efforts to rebuild trust come in the wake of a $235 million cyberattack in July. This incident prompted WazirX to collaborate with government agencies, including the Financial Intelligence Unit, to investigate the breach. The exchange has been cooperating with authorities by providing transaction trails and server logs to aid the investigation.
Steps Toward User Recovery
WazirX’s parent company, Zettai, has engaged in discussions with potential partners to enhance user recoveries. Options being explored include capital injections and profit-sharing arrangements. The exchange aims to return 52-55% of remaining crypto assets to clients within six months as part of its restructuring efforts, guided by a 10-member committee of creditors.
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