WazirX revamps asset security, severs ties with Liminal over $235M hack WazirX revamps asset security, severs ties with Liminal over $235M hack
WazirX said it was shifting the assets to ensure their maximum security.
2 min read
Updated: Aug. 14, 2024 at 2:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Indian crypto exchange WazirX, recently targeted in a $235 million hack, has ended its asset custody arrangement with Liminal.
In an Aug. 14 statement, WazirX announced it was moving assets from Liminal to new multi-signature (multi-sig) wallets. This decision aims to enhance the security of its remaining assets after the breach.
It stated:
“This step is essential to ensure maximum security of the assets in light of recent events. While we believe our interface and systems remain uncompromised, the same cannot be said for the custodian’s interface post the July 18th incident, prompting this precaution.”
WazirX said it couldn’t provide a timeline for these asset transfers. However, it would carefully manage the transfer process to avoid a repeat of the hacking incident. It added that it would soon release the new wallets containing the digital assets.
WazirX stated:
“We are exercising extreme caution in how and when we move these assets, considering the complexity involved…For transparency, we’ll publish the list of all new wallets once the migration is complete.”
After last month’s hack, WazirX and Liminal exchanged blame over whose infrastructure the malicious players hacked.
WazirX’s post-incident report emphasized that its interface and systems were not compromised while pointing fingers at Liminal. Conversely, the custodial service provider contended that its infrastructure was not at fault and suggested the breach emanated from the crypto exchange.
Other updates
On Aug. 13, WazirX revealed that it was nearing the end of restoring balances for trades conducted between July 18 and July 21. This action will reverse all transactions on the platform that occurred after the withdrawal halt on July 18, 2024.
The company furthered that it was collaborating with legal experts to devise an effective strategy for resuming withdrawals on its platform.
It has also received reports from 344 bounty hunters, including security professionals and ethical hackers, actively tracking the stolen funds.
Additionally, the firm is in discussions with seven partners to address the financial fall-outs of the attack.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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WazirX
WazirX is an India-based cryptocurrency exchange with an advanced trading interface and features to Buy, Sell & Trade cryptocurrencies.