Following the recent $235 million hack targeted at Indian crypto exchange WazirX, the platform has made a crucial decision to terminate its asset custody arrangement with Liminal. The exchange announced on August 14 that it will be transferring assets from Liminal to new multi-signature wallets in order to bolster the security of its remaining assets post-breach.
While WazirX did not provide a specific timeline for the asset transfers, it reassured its users that the process will be meticulously managed to prevent any recurrence of hacking incidents. The platform also mentioned that it will soon release details of the new wallets containing the digital assets for transparency purposes.
Blame Game and Restoration Efforts
Following the hack, WazirX and Liminal engaged in a blame game, each pointing fingers at the other regarding the security breach. However, in a post-incident report, WazirX clarified that its internal systems were not compromised, shifting the blame to Liminal. On the other hand, Liminal denied any fault in its infrastructure and suggested that the breach originated from the crypto exchange itself.
On August 13, WazirX disclosed that it was in the final stages of restoring balances for trades conducted between July 18 and July 21, with the aim of reversing transactions made after the withdrawal halt on July 18, 2024. The exchange is also working closely with legal experts to develop a strategy for resuming withdrawals on the platform. At the same time, WazirX has engaged 344 bounty hunters, including security professionals and ethical hackers, to track the stolen funds. Furthermore, the company is in talks with seven partners to address the financial implications of the attack.
In an effort to prioritize security, WazirX emphasized the importance of exercising extreme caution during the asset transfer process due to its complexity. By moving assets to new multi-sig wallets and publishing the list of all new wallets upon completion of the migration, the exchange aims to rebuild trust and provide transparency to its users.
The aftermath of the $235 million hack on WazirX has prompted the exchange to reevaluate its security measures, terminate its custody arrangement with Liminal, and take proactive steps to restore balances and ensure the safety of its users’ assets. Despite the challenges posed by the incident, WazirX remains committed to strengthening its platform and rebuilding trust within the crypto community.
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