WazirX Ends Asset Custody with Liminal After Hack

Following a recent $235 million hack, Indian crypto exchange WazirX has taken a significant step to safeguard its remaining assets. The exchange announced on Aug. 14 that it would be terminating its asset custody arrangement with Liminal and moving assets to new multi-signature wallets. This decision comes in response to the breach and aims to maximize the security of WazirX’s holdings.

Asset Transfer Process

WazirX emphasized the importance of ensuring the utmost security of its assets in light of the recent hacking incident. While the exchange believes its own interface and systems were not compromised, it cited concerns about the custodian’s interface following the breach on July 18th. As part of the asset transfer process, WazirX will handle the migration to the new wallets with extreme caution to prevent a recurrence of the hacking incident. The exchange plans to release a list of all new wallets once the migration is complete for transparency purposes.

Post-Incident Disputes

After the hack, WazirX and Liminal engaged in a blame game, each accusing the other of being responsible for the breach. WazirX maintained that its systems were secure, pointing fingers at Liminal, while the custodial service provider argued that the fault lay with the exchange. Despite the disagreements, WazirX is focused on restoring balances for trades conducted between July 18 and July 21 and is working with legal experts to facilitate withdrawals on its platform. The exchange has also enlisted the help of 344 bounty hunters to track down the stolen funds and is collaborating with various partners to address the financial repercussions of the attack.

WazirX’s decision to end its asset custody with Liminal and enhance security measures demonstrates its commitment to protecting its users’ assets in the aftermath of the hack. By moving assets to new multi-signature wallets and carefully managing the transfer process, WazirX aims to prevent future security breaches and restore confidence in its platform. As the exchange continues to address the fallout from the attack and collaborate with security professionals and partners, it remains focused on strengthening its security protocols to safeguard against similar incidents in the future.