WazirX partners with Zodia Custody as custodian ahead of creditor voting

Embattled crypto platform WazirX on Monday partnered with virtual asset service provider Zodia Custody as a custodian, days ahead of scheduled voting on a scheme for asset distribution.

 

The crypto exchange’s partnership with a new custodian comes about eight months after it blamed its service provider, Liminal Custody, for a cyberattack that led to an alleged security breach, resulting in losses of over $230 million. Liminal had stated that its systems were not compromised.

 

The announcement comes at a time when creditors are tentatively scheduled to vote on the asset redistribution scheme between March 19 and 28.

 

WazirX said its latest service provider offers clear distinctions between assets held for various clients, ensuring no co-mingling of client assets.

 

“We want to ensure we partner with the very best of the industry’s custody solutions to build trust and confidence,” said Nischal Shetty, founder, WazirX.

 

The platform has claims worth $546.5 million and $302 million in assets.

 

“By providing our expertise in supporting institutional clients and our commitment to a compliance-first approach, we will empower WazirX and its users to seamlessly engage with digital assets in a way that protects their capital and complies with local regulations,” said Zane Suren, managing director, commercial, MEA, Zodia Custody.

 

For the scheme to be approved, WazirX would require approval from at least 50 per cent of creditors by volume and 75 per cent by value.

 

The platform has over 4.3 million creditors.

 

As part of the scheme, creditors will receive an initial distribution of available liquid assets within 10 business days of the scheme becoming effective. They will also receive recovery tokens, enabling them to redeem these as part of the company’s recovery process.

 

Zettai, the parent company of WazirX, reported a consolidated loss of $809,490 in 2023-24, down from $1.34 million in FY23, according to company disclosures.

 

Meanwhile, its revenue stood at $6.97 million in FY24, a 42.5 per cent decline from $12.13 million in FY23.