WazirX Revolutionizes Asset Security After Massive Hack

By: Eliza Bennet

Indian crypto exchange WazirX, recently targeted in a $235 million hack, has officially severed its asset custody arrangement with Liminal.

In an August 14 statement, WazirX announced the initiation of asset transfers from Liminal to new multi-signature (multi-sig) wallets to enhance the security of its remaining assets post-breach.

The company emphasized in its statement, "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."

While no specific timeline for asset transfers has been provided, WazirX assured it would manage the process carefully to prevent another incident. The company plans to publish the list of new wallets containing the digital assets once the migration is complete.

Following the July hack, WazirX and Liminal have exchanged accusations regarding the culpability of the breach. WazirX's post-incident report underscored that their interface and systems remained intact, pointing out failures in Liminal's systems. On the other hand, Liminal contended that their infrastructure remained robust and suggested the breach originated from WazirX’s end.

Other Updates

On Aug. 13, WazirX revealed it was closing in on restoring balances for transactions carried out between July 18 and July 21. This initiative will reverse all transactions on the platform that occurred post the withdrawal halt on July 18, 2024.

Additionally, the platform, in collaboration with legal experts, is formulating a strategy to resume withdrawals. They have also received input from 344 bounty hunters, including security professionals and ethical hackers, who are actively tracking the stolen funds.

The firm disclosed ongoing discussions with seven partners to address the various financial repercussions stemming from the hack.