After falling victim to a $235 million hack, Indian crypto exchange WazirX has made the decision to terminate its asset custody arrangement with Liminal. In a statement released on August 14, WazirX declared its intention to transfer assets from Liminal to new multi-signature wallets in order to bolster the security of its remaining assets post-breach. The exchange emphasized the importance of this move in safeguarding the assets, particularly in light of the recent security incident.
WazirX expressed its commitment to managing the asset transfer process with utmost care to avoid a repeat of the hacking incident. While refraining from providing a specific timeline for the transfers, the exchange assured users that it would take the necessary precautions to ensure a smooth transition to the new wallets. Furthermore, WazirX pledged to make the list of all new wallets public once the migration is successfully completed.
In the aftermath of the hack, WazirX found itself embroiled in a dispute with Liminal over the source of the security breach. The exchange’s post-incident analysis maintained that its own systems were uncompromised, pointing the finger at Liminal for the breach. However, Liminal refuted these claims, asserting that its infrastructure was not at fault and attributing the breach to vulnerabilities in WazirX’s platform.
Restoring Balances and Collaborating with Experts
As part of its recovery efforts, WazirX disclosed that it was in the final stages of restoring balances for trades conducted between July 18 and July 21. This process would entail reversing all transactions that took place after the withdrawal halt on July 18, 2024. Additionally, the exchange revealed that it was working closely with legal professionals to develop a comprehensive strategy for reinstating withdrawals on its platform. Furthermore, WazirX reported receiving input from 344 security experts and ethical hackers who were actively tracing the stolen funds, along with engaging in discussions with seven partners to address the financial repercussions of the attack.
As the cryptocurrency landscape continues to grapple with security challenges, WazirX’s proactive measures to fortify its asset security and restore user confidence in the wake of the recent hack demonstrate the importance of implementing robust cybersecurity protocols in the crypto industry. By prioritizing transparency, collaboration with security experts, and stringent security measures, exchanges like WazirX can enhance their resilience against malicious threats and protect user assets from potential breaches.