Indian crypto exchange WazirX has decided to end its asset custody arrangement with Liminal following a recent $235 million hack. In an announcement on August 14, WazirX stated that it would be transferring its assets from Liminal to new multi-signature (multi-sig) wallets in order to improve the security of its remaining assets post-breach. This move is crucial to maximize the security of the assets, especially considering the events that have unfolded.
Security Measures Implemented
WazirX emphasized the importance of exercising caution in the asset transfer process to prevent any future hacking incidents. The company did not provide a specific timeline for the transfers but assured its users that the process would be carefully managed. It also mentioned that they would be releasing the new wallets containing the digital assets soon. Furthermore, WazirX committed to transparency by promising to publish a list of all new wallets once the migration is complete.
Blame Game and Balances Restoration
Following the hack last month, WazirX and Liminal were in a dispute over whose infrastructure was compromised by the malicious players. While WazirX claimed that its interface and systems remained secure, they pointed fingers at Liminal. On the other hand, Liminal argued that its infrastructure was not at fault and suggested that the breach originated from the crypto exchange itself. In an update on August 13, WazirX revealed that it was in the final stages of restoring balances for trades conducted between July 18 and July 21. This action would reverse all transactions on the platform post the withdrawal halt on July 18, 2024. The company also mentioned that it was working with legal experts to develop a strategy for resuming withdrawals on its platform. Additionally, WazirX reported that 344 bounty hunters, including security professionals and ethical hackers, were actively tracking the stolen funds. The company is also collaborating with seven partners to address the financial implications of the attack.
The recent hack faced by WazirX has prompted the exchange to take significant security measures to safeguard its assets and users. The decision to move away from Liminal and transition to new multi-sig wallets demonstrates WazirX’s commitment to enhancing security and regaining the trust of its customers. By prioritizing transparency and careful asset management, WazirX aims to prevent any future security breaches and provide a safer trading environment for its users.
