Following the recent $235 million hack on Indian crypto exchange WazirX, the exchange has decided to terminate its asset custody arrangement with Liminal. In an effort to enhance the security of its remaining assets after the breach, WazirX announced on Aug. 14 that it would be moving its assets from Liminal to new multi-signature (multi-sig) wallets.
Enhanced Security Measures
The decision to move assets to multi-sig wallets is crucial in ensuring the maximum security of the assets, especially in light of the recent hacking incident. While WazirX believes that its interface and systems have not been compromised, it expressed concerns about the custodian’s interface following the July 18th breach, prompting the precautionary measure.
WazirX has not provided a specific timeline for the asset transfers, but it assured users that it would carefully manage the process to prevent a recurrence of the hacking incident. The exchange also stated that it would soon release the new wallets containing the digital assets and promised to publish a list of all new wallets once the migration is complete.
After the hack last month, WazirX and Liminal engaged in a blame-game over whose infrastructure the malicious players targeted. While WazirX’s post-incident report claimed that its interface and systems were uncompromised and pointed fingers at Liminal, the custodial service provider argued that its infrastructure was not at fault and suggested that the breach originated from the crypto exchange itself.
On Aug. 13, WazirX revealed that it was in the process of restoring balances for trades conducted between July 18 and July 21. This action will reverse all transactions on the platform that took place after 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.
WazirX has received reports from 344 bounty hunters, including security professionals and ethical hackers, who are actively tracking the stolen funds. Additionally, the exchange is in discussions with seven partners to address the financial repercussions of the attack and explore ways to mitigate the impact on its users.
The aftermath of WazirX’s $235 million hack has prompted the exchange to take swift action to enhance the security of its assets, terminate its custody arrangement with Liminal, and collaborate with various stakeholders to address the fallout from the incident. Moving forward, WazirX remains committed to safeguarding its users’ funds and strengthening its platform against future security threats.