WazirX, Indian cryptocurrency exchange, announced on Wednesday a partnership with BitGo Trust Company, Inc., a regulated digital asset custodian and infrastructure provider, to enhance the security of funds on the platform. The move seeks to restore user trust following the $230 million cyber attack WazirX faced in 2024.
WazirX was working with Liminal as its third-party custody solutions provider, until the July 2024 attack when both parties blamed each other for security lapses. Now, the exchange is undergoing a restructuring and as such selected BitGo Trust as the regulated custodian of choice.
BitGo has secured digital assets since 2013, with specific focus on India since 2017. The company’s institutional-grade technological infrastructure includes multi-signature wallets with robust policies, controls and up to $250 million in insurance coverage. BitGo Trust also supports over 1,100 coins and tokens and has the broadest support of the top 100 assets by market cap, more than any other custodian in the space. BitGo also works as the custodian for Mt. Gox and FTX creditors to secure assets and manage distributions.
“By partnering with BitGo, we are taking a decisive step towards rebuilding confidence in WazirX. Their expertise will not only enhance the security of funds but also facilitate a transparent and efficient process for distributing funds to creditors,” said WazirX founder Nischal Shetty.
- Also read: WazirX recovery funds aimed at rebuilding trust in crypto ecosystem: CoinSwitch co-founder
Meanwhile, Liminal Custody refrained from making a comment on the partnership. An official spokesperson told businessline, “Our position has always been clear that it is self-custody that created the risk, and licensed regulated custody is safer for funds, who they choose to partner is their call. We continue to request them to move the remaining significant amount of assets from the wallets which are still linked with Liminal’s infrastructure.”
