WazirX seeks new custodian partner with insurance for funds

Crypto exchange WazirX is looking for a new custodian that can offer insurance for user funds, aiming to increase security and minimize risk.

Indian cryptocurrency exchange WazirX is actively looking for a new custody partner that can provide insurance for user funds and aims to increase security as it works to restructure operations following a major cyberattack in July.

📢 Proof of Reserve is now live

In line with our commitment to transparency, you can now verify wallet addresses and review asset balances through our Proof of Reserves.

Click here 👉 https://t.co/Aivwy4nYCP

Note: Proof of Reserve dashboard with dynamically updated data… pic.twitter.com/0yrg9zvrQT

— WazirX: Ka Bitcoin Exchange of India (@WazirXIndia) October 25, 2024

The exchange said in an Oct. 24 blog post that it was trying to find “a custody provider that can offer insurance for the funds so that loss is minimized even in worst-case scenarios.”

“While security is paramount, insurance will begin to play an even more important role in custody services in this dynamic new crypto world.”

WazirX

Additionally, WazirX has introduced a dual proof-of-reserve dashboard, developed in collaboration with CoinGabbar, a research marketplace, that allows users to independently verify wallet addresses and asset balances.

The platform’s efforts to rebuild trust follow a $235 million cyberattack in July that prompted WazirX to cooperate with government agencies, including the Financial Intelligence Unit, to investigate the incident. As Crypto.news previously reported, the exchange is cooperating with authorities and providing transaction traces and server logs to assist in the investigation.

WazirX’s parent company, Zettai, has also been in talks with potential partners to increase user recoveries and explore options such as capital injections and profit-sharing arrangements. WazirX aims to return 52-55% of its remaining crypto assets to customers within six months as part of restructuring efforts under the guidance of a 10-member committee of creditors.