Enables K63-linked polyubiquitin modification-dependent protein binding activity and thiol-dependent deubiquitinase. Involved in several processes, including negative regulation of I-kappaB kinase/NF-kappaB signaling; negative regulation of transcription by RNA polymerase II; and protein K48-linked deubiquitination. Acts upstream of or within in utero embryonic development and protein deubiquitination. Located in cytoplasm. Orthologous to human OTUD7B (OTU deubiquitinase 7B). [provided by Alliance of Genome Resources, Apr 2022]