WazirX Partners BitGo to Enhance Fund Security

New Delhi, Mar 12 (PTI) Troubled Indian cryptocurrency exchange WazirX has partnered with BitGo Trust Company -- a regulated digital asset custodian and infrastructure provider -- to improve security of funds on its platform and rebuild user trust.

In July 2024, WazirX parent firm Zettai Pte suffered a theft in which over USD 230 million was stolen from its platform. This incident left many users, known as creditors, with substantial financial losses.

The collaboration aims to highlight the measures being taken to restore user trust, a company statement said.

"User trust and fund safety are our utmost priorities. 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," WazirX Founder Nischal Shetty said in a statement.

WazirX has already frozen an initial tranche of stolen assets worth USDT 3 million, as of January 2025.

The Singapore High Court in January granted permission to Zettai Pte to convene a meeting, and further conduct voting with WazirX users, for a scheme aimed at expediting the recovery of over USD 230 million in stolen assets.

The voting process on the scheme has been tentatively scheduled from March 19-28, 2025.

The said scheme establishes a structured approach for reorganising the liabilities associated with WazirX to optimise returns for all platform users.

It includes the issuance of recovery tokens (RTs) and the distribution of recoveries through RT purchase mechanisms.