WazirX ends partnership with Liminal Custody after a $230 million crypto hack on July 18th.
WazirX migrates assets to new multisig wallets, ensuring maximum security post-breach.
Investors remain concerned as WazirX works to restore security and access to locked funds.
WazirX, a major Indian cryptocurrency exchange, is taking steps to safeguard its users’ assets after the recent security breach. The exchange has now announced the transfer of remaining assets from Liminal Custody to new multisig wallets.
This move comes after the cyberattack on July 18, which resulted in the theft of approximately $230 million worth of cryptocurrencies. The latest exchange’ move is to mitigate risk and also to reassure its users.
👋 Tribe! We want to keep you informed about the measures we're taking to safeguard crypto assets on the exchange. We are in the process of migrating the remaining assets held with Liminal to new multisig wallets. This step is essential to ensure maximum security of the assets… pic.twitter.com/3C8ort5P7D
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 14, 2024
The July 18 hack was one of the largest security breaches in India’s crypto space. Unknown hackers targeted a multisig wallet holding a substantial portion of WazirX’s investor funds. According to WazirX, the wallet had four key holders: three from WazirX and one from Liminal Custody. While WazirX’s systems reportedly remained uncompromised, the attack exploited vulnerabilities on the custodian’s side, resulting in the loss of nearly 45% of the investor funds.
Because of this, WazirX has decided to sever ties with Liminal Custody and has started transferring the remaining assets to new multisig wallets. WazirX assured users that this step is necessary to ensure maximum security, emphasizing that while their interface and systems were unaffected, they could not guarantee the same for Liminal’s platform after the attack.
WazirX is proceeding cautiously with this migration due to the complexities involved. The exchange has not provided a specific timeline for completing the process. However, they have pledged transparency throughout, promising to publish a list of all new wallets once the migration is finalized. This step is intended to rebuild trust with users and demonstrate their commitment to securing assets.
Despite these efforts, many investors remain dissatisfied. The hack has left a significant portion of their funds inaccessible. WazirX’s reassurances have done little to ease their concerns, as they continue to demand immediate access to their locked funds. The exchange’s ongoing efforts to secure assets and maintain transparency will be crucial in addressing these investor concerns and restoring confidence in the platform.
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