Crypto exchange WazirX is searching for a new custodian that can offer insurance for user funds, aiming to enhance security and minimize risk.
Indian cryptocurrency exchange WazirX is actively seeking a new custodian partner that can provide insurance for user funds, aiming to bolster security as it works to restructure operations following a major cyberattack in July.
📢 Proof of Reserves 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: A Proof of Reserves dashboard with dynamically updated data… pic.twitter.com/0yrg9zvrQT
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) October 25, 2024
In a blog post on Oct. 24, the exchange said it is trying to find a “custody provider who can offer insurance for the funds so that loss is minimized, even in worst-case scenarios.”
“While security is paramount, in this dynamic and new world of crypto, insurance will start playing an even more important role in custody services.”
WazirX
Additionally, WazirX launched a dual proof-of-reserves dashboard, developed in collaboration with CoinGabbar, a research marketplace, enabling users to independently verify wallet addresses and asset balances.
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The platform’s efforts to rebuild trust come in the wake of a $235 million cyberattack in July, which prompted WazirX to collaborate with government agencies, including the Financial Intelligence Unit, to investigate the incident. As crypto.news reported earlier, the exchange has been cooperating with authorities, providing transaction trails and server logs to aid the investigation.
WazirX’s parent company, Zettai, has also engaged in discussions with potential partners to enhance user recoveries, exploring options like capital injections and profit-sharing arrangements. WazirX 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.
Read more: Binance fires back at WazirX over control claims