The exchange aims to find a custody partner to protect its users’ investments as it restructures its operations following a major cyber attack in July.

In a blog announcement made on October 24, 2024, WazirX stated that it was trying to find “a custody provider that can offer insurance to minimize the loss of user funds.”

This step is considered an important move taken to ensure the security of users’ assets and minimize possible losses. As a result of the cyber attack in July, the stock exchange suffered a loss of $ 235 million, which seriously shook its credibility.

WazirX continues to take various measures to rebuild user trust. In this context, it has launched a pair of proof-of-reserves dashboards developed in collaboration with CoinGabbar.

This panel allows users to independently verify their wallet addresses and asset balances. While users can check the security of their assets through this panel, the exchange also tries to build trust by providing transparency.

Zettai, the parent company of the exchange, continues to negotiate with potential partners to increase user savings. These talks focus on alternative financing methods such as capital injections and profit-sharing agreements.

In line with WazirX’s restructuring process, Zettai aims to return 52-55% of the remaining crypto assets to customers within six months. This process is guided by a creditors committee consisting of ten members.

WazirX’s current situation sheds light on the security issues faced by cryptocurrency exchanges. Risks such as cyber attacks and fraud can affect stock market users’ willingness to invest.

Therefore, the steps taken by exchanges to increase security may also affect the general trust environment in the industry. WazirX’s search for insurance for user funds may set an example for other exchanges in the industry and once again bring to the fore the importance of such measures.

In addition, WazirX’s process of investigating the cyber attack in cooperation with government institutions also increases the importance of the industry’s relationship with regulatory authorities. Such collaborations can contribute to the exchanges gaining a more solid and reliable structure.

WazirX’s search for insurance for user funds and its effort to find new custody services are considered a critical step in restoring trust between cryptocurrency exchanges.

Ensuring the security of users’ funds is essential for the growth and development of the cryptocurrency industry. These steps taken by WazirX stand out as an important part of its efforts to create a safer crypto ecosystem in the future.