- WazirX is ending its partnership with Liminal Custody
- WazirX plans to transfer remaining assets from Liminal Custody to new, more secure multi-sig wallets to improve security.
- The exchange has filed a First Information Report (FIR) and is working with various investigative agencies, including the FBI.
In the wake of India’s largest cryptocurrency hack, where $230 million was stolen, WazirX has announced it is severing its partnership with Liminal Custody. The digital asset custody platform, responsible for safeguarding the compromised multi-signature (multi-sig) wallet, was implicated in the cyberattack that occurred on July 18. The breach has intensified concerns over the security of digital assets in India’s burgeoning crypto market.
On Wednesday, WazirX outlined its plan to migrate the remaining assets from Liminal Custody to new multi-sig wallets, aiming to enhance the security of its digital holdings. Despite the breach, WazirX has asserted that its platform and systems remain uncompromised, placing the responsibility for the security lapse squarely on Liminal Custody.
This decision to cut ties with Liminal Custody represents a crucial move by WazirX to restore user trust and ensure asset safety. The exchange’s prompt action to relocate assets underscores the increasing need for robust security measures in the crypto sector, which continues to be a prime target for cyberattacks.
In response to the hack, WazirX has filed a First Information Report (FIR) and is collaborating with several investigative agencies, including the U.S. Federal Bureau of Investigation (FBI). Although these steps demonstrate the seriousness with which WazirX is addressing the breach, the stolen funds remain untraceable. Despite the blockchain’s inherent traceability, sophisticated hackers exploit vulnerabilities in decentralized systems, making recovery challenging.
WazirX User’s Outrage and Calls for Compensation Grow Louder
The breach, now the largest cryptocurrency hack in Indian history, has left numerous investors feeling abandoned and anxious about recovering their lost funds. Social media platforms are abuzz with affected investors organizing campaigns, sharing their experiences, and demanding compensation. Users are using hashtags and online forums to amplify their voices, urging both the exchange and regulators to act decisively.
The backlash against WazirX is mounting, with users expressing frustration over what they perceive as inadequate communication and transparency. Despite efforts to transfer remaining assets to secure wallets and involvement in filing the FIR, many feel that WazirX’s response has been lacking. There is a growing call for compensation from WazirX’s profits and greater transparency regarding the exchange’s current holdings.
Investor dissatisfaction extends beyond WazirX, with criticisms also directed at Indian regulatory authorities. The perceived delay in action and lack of detailed updates from regulators have raised concerns about their effectiveness and commitment to addressing the impact of the hack. The situation underscores the urgent need for improved accountability and openness in an industry still grappling with fraud and technical failures.
