Key Takeaways
- WazirX has partnered with Zodia Custody as it looks to relaunch its crypto exchange.
- Indian customers criticized the move, questioning how WazirX could sign a custody deal before creditors approved the plan.
- The exchange has been defunct since a $235 million hack in June 2024.
India’s once-largest crypto exchange, WazirX, has secured a new custody partner, Zodia Custody.
The partnership comes nearly nine months after a $235 million hack forced WazirX to shut down operations.
The exchange blamed the breach on security flaws in its previous custody provider, which allowed hackers to drain nearly half of customer assets.
Since then, WazirX has remained largely inactive, freezing withdrawals and blocking INR deposits.
However, as the platform prepares for a potential relaunch, it faces mounting scrutiny from its own user base. Many remain unconvinced that WazirX is prioritizing customer reimbursement over its own survival.
Zodia Custody: A Standard Chartered-Backed Firm
Zodia Custody, WazirX’s newly appointed partner, is an institutional-grade custody provider with backing from Standard Chartered, Northern Trust, SBI Holdings, NAB, and Emirates NBD.
The firm operates under multiple global financial regulators and serves some of the world’s largest institutions.
WazirX framed the partnership as a step toward restoring confidence in its platform.
“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,” said WazirX co-founder Nischal Shetty.
Despite the exchange’s assurances, users remain wary. Many have questioned why WazirX is pushing forward with a custody deal before securing creditor approval to relaunch.
Users Skeptical of WazirX’s Motives
The announcement comes amid growing frustration among WazirX users, who have been left in limbo since last year’s hack.
In February, the exchange gave customers an ultimatum: either approve a relaunch—allowing them to recover 50-55% of their remaining assets based on market prices at the time of the hack—or wait three to five years for liquidation, which could result in even lower payouts.
The handling of the situation has drawn widespread criticism.
After the hack, WazirX relocated its operations to Singapore for restructuring, prompting accusations that it was manipulating creditors and investors into accepting a deal that primarily benefited the exchange and its leadership.
While WazirX has muted comments on its official channels to avoid backlash, crypto users have not stayed silent. Many argue that the platform should prioritize reimbursing customers instead of orchestrating a comeback.
Others accused WazirX of misleading creditors by presenting the new custody deal as a done deal, even though the exchange’s restart plan has yet to be formally approved.
For now, the Indian exchange remains caught between its ambitions to relaunch and a user base that has little faith left to give.
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