Following the $235 million hack targeting Indian crypto exchange WazirX, the platform has decided to end its asset custody arrangement with Liminal. The exchange announced on August 14 that it would be moving its assets from Liminal to new multi-signature wallets to enhance security. This decision comes in the wake of the recent breach and aims to ensure the maximum security of the remaining assets. According to WazirX, their interface and systems remain uncompromised, but the same cannot be said for Liminal’s interface post the July 18th incident, hence the precaution.
WazirX has not provided a specific timeline for the asset transfers but has assured users that the process will be carefully managed to avoid a repeat of the hacking incident. The exchange plans to release the new wallets containing the digital assets soon. In an effort to maintain transparency throughout the transition, WazirX has stated that they will publish a list of all new wallets once the migration is complete. The complexity involved in moving these assets requires extreme caution, according to the exchange.
After last month’s hack, WazirX and Liminal engaged in a blame game over whose infrastructure the malicious players hacked. WazirX’s post-incident report emphasized that its interface and systems were secure, while pointing the finger at Liminal. Conversely, Liminal contended that its infrastructure was not at fault and suggested that the breach originated from the crypto exchange. This dispute has added another layer of complexity to the already challenging situation post-hack.
On August 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 is also working with legal experts to develop an effective strategy for resuming withdrawals on its platform. In addition, WazirX has received reports from 344 bounty hunters, including security professionals and ethical hackers, who are actively tracking the stolen funds. The exchange is also in discussions with seven partners to address the financial implications of the attack.
While WazirX is taking proactive steps to enhance security and address the aftermath of the hack, the road ahead remains uncertain. The transition to new multi-signature wallets, the ongoing disputes with Liminal, and the efforts to restore balances and resume withdrawals all pose significant challenges for the exchange. As the crypto industry continues to grapple with cybersecurity threats, it is imperative for platforms like WazirX to prioritize the security of user assets and maintain transparency in their operations.
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