Indian cryptocurrency exchange WazirX recently faced a $235 million hack that prompted the company to reevaluate its asset custody arrangements. In response to the breach, WazirX made the decision to end its custody arrangement with Liminal and transfer its assets to new multi-signature wallets for enhanced security measures. The exchange stated that ensuring the maximum security of its remaining assets was paramount following the breach.
While WazirX did not provide a specific timeline for the asset transfers, the company emphasized the importance of managing the process carefully to avoid a repeat of the hacking incident. The exchange plans to release the new wallets containing the digital assets and will publish the list of all new wallets once the migration is complete. WazirX acknowledged the complexity involved in the asset transfer process and assured users that they are exercising extreme caution in the handling of the assets.
Following the hack, WazirX and Liminal engaged in a blame game, with both parties accusing each other of being responsible for the security breach. WazirX’s post-incident report claimed that its interface and systems were not compromised, while pointing fingers at Liminal. On the other hand, Liminal argued that its infrastructure was not at fault and suggested that the breach originated from the crypto exchange itself. WazirX revealed that it was in the process of restoring balances for trades conducted between July 18 and July 21, aiming to reverse transactions that occurred after the withdrawal halt on July 18, 2024.
In response to the breach, WazirX has been collaborating with legal experts to devise an effective strategy for resuming withdrawals on its platform. The exchange has also engaged with 344 bounty hunters, including security professionals and ethical hackers, who are actively tracking the stolen funds. Additionally, WazirX is in discussions with seven partners to address the financial implications of the attack and ensure the security of its platform moving forward.
The aftermath of the WazirX hack has highlighted the importance of robust security measures in the cryptocurrency industry. By transitioning assets to new multi-signature wallets and collaborating with security experts, WazirX is taking proactive steps to enhance the security of its platform and restore user trust. As the crypto market continues to evolve, exchanges must prioritize security and transparency to protect user assets and maintain a secure trading environment.
