WazirX Terminates Asset Custody Agreement Following Major Hack
Indian cryptocurrency exchange WazirX has announced the termination of its asset custody arrangement with Liminal, following a significant hack that resulted in a theft of $235 million. In a statement released on August 14, WazirX revealed plans to transfer its assets from Liminal to new multi-signature wallets. This move is intended to bolster the security of the remaining assets after the breach.
The exchange emphasized, “This step is essential to ensure maximum security of the assets in light of recent events. While we believe our interface and systems remain uncompromised, the same cannot be said for the custodian’s interface post the July 18th incident, prompting this precaution.”
WazirX did not specify a timeline for the asset transfers but assured users that the process would be managed carefully to prevent a recurrence of the hacking incident. The company indicated that it would soon unveil the new wallets that will hold the digital assets.
In their statement, WazirX noted, “We are exercising extreme caution in how and when we move these assets, considering the complexity involved… For transparency, we’ll publish the list of all new wallets once the migration is complete.”
Blame Game Following the Hack
In the aftermath of last month’s hack, WazirX and Liminal exchanged accusations regarding the source of the breach. WazirX’s post-incident report highlighted that its interface and systems were not compromised, placing blame on Liminal. Conversely, Liminal defended its infrastructure, asserting that the breach was the responsibility of the crypto exchange.
Restoration of Services and Collaboration with Experts
On August 13, WazirX announced that it is nearing the completion of restoring balances for trades executed between July 18 and July 21. This restoration will nullify all transactions that took place on the platform after the withdrawal suspension on July 18, 2024.
The company is also working with legal experts to formulate an effective strategy for resuming withdrawals on its platform. Furthermore, WazirX has received reports from 344 bounty hunters, including security professionals and ethical hackers, who are currently tracking the stolen funds. The firm is in discussions with seven partners to address the financial repercussions of the attack.
Conclusion
WazirX’s proactive measures to secure its assets and restore user balances reflect its commitment to addressing the fallout from the recent security breach. As the situation develops, the exchange aims to enhance its infrastructure to prevent future incidents and regain user trust.
