WazirX Partners Digital Asset Firm Zodia Custody to Resume Operations

WazirX, India’s once biggest cryptocurrency exchange, has teamed up with Zodia Custody, a digital asset security firm backed by Standard Chartered and Northern Trust, to rebuild the exchange’s security. The partnership also aims to restore investors’ confidence, a much-needed factor in determining WazirX’s future growth, given its million-dollar security breach earlier last year.

What Happened to WazirX?

In July 2024, WazirX suffered a massive hack, losing over $230 million in crypto assets. The attack forced the platform to halt operations, stopping withdrawals and deposits. Many users were left frustrated and worried about their funds.

WazirX has chosen Zodia Custody as its official custodian. It entails that the custodian firm will protect users’ assets and potentially prevent another security breach. Zodia is known for its strong security measures and works with big financial institutions. The partnership is expected to make WazirX safer for users and help the exchange rebuild its reputation.

Despite the new security measures, some users remain skeptical. WazirX has proposed a plan to repay affected customers, but the plan awaits approval from creditors. If endorsed, the Indian exchange will commence customer repayments in April, enabling users to recover as much as 80% of their portfolio. The exchange intends to offer recovery tokens to users as compensation for lost funds.

Co-founder Nischal Shetty, expressing his commitment to restoring WazirX’s growth, said:

“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, becomes urgent. We want to ensure we partner with the very best of the industry’s custody providing solutions to build trust and confidence.”

Way Back Up?

WazirX’s partnership with Zodia Custody is a big step toward recovery, but the real test is winning back user trust. With stronger security and a repayment plan in place, the exchange hopes to bounce back.

In response to increasing cyber threats, cryptocurrency exchanges are enhancing their security measures, and various cryptocurrency exchanges have introduced multiple forms of security measures. These advancements underscore the industry’s commitment to safeguarding digital assets against evolving cyber threats.