WazirX Shifts to Multi-Sig Wallets After $235M Hack Fallout

WazirX, an Indian cryptocurrency exchange that lost $235 million in a hack, has moved its assets to new multi-sig wallets. This move is to enhance the security standards and regain the confidence of its clients. The exchange will discontinue its former partnership with custodian Liminal to improve security measures.

WazirX Moves to Multi-Sig Wallets Post Hack

WazirX stated that the transition from Liminal to multi-sig wallets will have a flexible timeline as it is a complex process. The exchange is moving towards a more cautious approach to avoid more risks in the future. In addition, WazirX plans to release the addresses of all new wallets once the transfer is complete so that everyone is aware of it.

This comes after the July 18 incident, in which Liminal raised questions on the safety of asset custody. WazirX noted that its systems and user interface were not compromised, but the custodian’s platform could have been vulnerable. Consequently, the exchange is implementing multi-sig technology to enhance the security of the assets.

WazirX Collaborates with Experts to Trace Funds

In connection with the hack, WazirX actively reversed transactions from July 18 to July 21. This is part of their overall plan to address the consequences of the unauthorized withdrawals. The company works with lawyers to devise a plan for lifting the suspension of withdrawals.

WazirX has interacted with security experts and ethical hackers and has received more than 344 reports from bounty hunters in tracing the stolen funds. Furthermore, consultations with seven financial partners are being held to address the effects of the attack effectively.

While WazirX continues to deal with the consequences of the breach, its management continues to work towards implementing strong security measures and increasing operational openness. The measures taken by the exchange show that the platform is keen on protecting user funds and getting the platform back online. WazirX plans to enhance the technology and work closely with legal and security advisors to prevent future risks.

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