Following a recent $235 million hack, Indian crypto exchange WazirX has decided to terminate its asset custody arrangement with Liminal. In an official statement on August 14, WazirX announced the transition of assets from Liminal to new multi-signature (multi-sig) wallets. This strategic move is aimed at fortifying the security of their remaining assets in the aftermath of the breach.
The exchange emphasized the importance of this step in ensuring the maximum security of assets, especially considering the recent events. While maintaining confidence in the integrity of their interface and systems, WazirX expressed concerns regarding the security of the custodian’s interface post the July 18th incident, leading to this precautionary measure.
Meticulous Asset Transfer Process
WazirX refrained from providing a specific timeline for the asset transfers but assured users that the process would be handled with utmost care to prevent a recurrence of the hacking incident. The exchange also mentioned their plans to release the details of the new wallets holding digital assets once the migration process is completed.
Since the hack last month, WazirX and Liminal have been engaged in a blame game regarding the source of the breach within their infrastructures. WazirX’s post-incident report defended the integrity of their interface and systems while pointing fingers at Liminal. On the contrary, Liminal maintained that their infrastructure was secure and shifted the blame towards the crypto exchange.
Restoring Balances and Moving Forward
As part of their recovery efforts, WazirX announced the nearing completion of balance restoration for trades conducted between July 18 and July 21. This action will involve reversing all transactions made on the platform after the withdrawal halt on July 18, 2024. The exchange is actively collaborating with legal experts to devise an effective strategy for resuming withdrawals on their platform.
Additionally, WazirX has engaged 344 bounty hunters, consisting of security professionals and ethical hackers, to track the stolen funds. The company is also in discussions with seven partners to address the financial repercussions of the attack, reflecting their commitment to safeguarding user assets and enhancing security measures in the wake of the recent hack.
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