WazirX, one of India’s prominent cryptocurrency exchanges, has announced the appointment of Zodia Custody as its official custodian as it plans to restart its operation. This announcement was made on social media platform X (formerly known as Twitter).
Zodia Custody is a globally recognized institution-first digital asset platform that is backed by Standard Chartered, Northern Trust and other major financial entities. With this partnership, the users will be provided with secure and compliant custody solutions.
WazirX recently also announced partnering with Bitgo Trust Company Inc., to enhance the security of the funds on the platform.
WazirX Restructuring Scheme
WazirX’s plans to restart operations are dependent on user approval of its restructuring scheme. Voting is scheduled from March 19 to March 28, 2025. For the scheme to be effective, it requires a majority vote in favor, specifically more than 75% by value of the voting creditors.
If this scheme is approved, users could start receiving their payments as early as April 2025. On the contrary, if the scheme is not approved, WazirX may face liquidation and delay in asset recovery (probably until 2030).
The users on the other hand are furious and do not support the restructuring process as the entire scheme benefits the exchange and not the creditors. This announcement of a partnership with Zodia custody may help sway voters by depicting that the exchange is committed to securing the user funds if such a scenario ever creeps up again.
In short, this announcement is a strategic move that aims to rebuild trust and highlights the benefit of voting “yes” for restructuring despite user frustration over prolonged fund freezes.
WazirX Under Scrutiny
Moreover, the move comes at a time when WazirX is facing scrutiny from India’s Financial Intelligence Unit (FIU). The exchange has been under investigation for compliance issues. The investigation is focused on unauthorized transfers, security lapses, and the exchange’s handling of user funds.
As of now the exchange has been cooperative and has submitted all the required documents to the agencies like CERT-In and IB.
The exchange has faced several backslash in recent months from its creditors. Will this development make any difference to the current stance of the creditors or will they still push for not voting at all for the restructuring process? Only time will tell.
Also Read: CZ Advocates for Utility over Tokens for AI Agents in Crypto
