Indian cryptocurrency exchange WazirX, which was recently the target of a $235 million hack, has taken the decision 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 in order to enhance the security of its remaining assets following the breach.
By transitioning to multi-sig wallets, WazirX hopes to ensure the maximum security of its assets, especially in the aftermath of the recent hacking incident. The exchange mentioned that while it believes its own interface and systems are secure, it can no longer vouch for the security of Liminal’s interface post the July 18th breach. This precautionary step is essential to safeguard the assets against any potential vulnerabilities.
Although WazirX did not provide a specific timeline for the asset transfers, it assured users that the process would be carefully managed to prevent a repeat of the hacking incident. The exchange also stated that the new wallets containing the digital assets would be released soon, with a commitment to transparency by publishing the list of all new wallets once the migration is complete.
Following the hack last month, WazirX and Liminal engaged in a blame game regarding the source of the breach. WazirX maintained that its systems were not compromised, while pointing fingers at Liminal. Conversely, Liminal argued that the breach originated from the cryptocurrency exchange. Furthermore, WazirX has been working on restoring balances for trades conducted between July 18 and July 21, with plans to reverse transactions that occurred after the withdrawal halt on July 18, 2024.
To address the aftermath of the attack, WazirX is collaborating with legal experts to devise an effective strategy for resuming withdrawals on its platform. The exchange has also enlisted the help of 344 bounty hunters, including security professionals and ethical hackers, to track the stolen funds. Additionally, WazirX is in discussions with seven partners to manage the financial implications of the security breach.
Overall, the recent security measures taken by WazirX demonstrate a proactive approach towards protecting user assets and addressing the aftermath of the hacking incident. By embracing multi-sig wallets and collaborating with security experts, the exchange is working towards enhancing its security protocols and regaining user trust.
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