WazirX was shocked after finding its security breached by significant hackers, It is one of India’s largest cryptocurrency exchanges. The hacker sucked out 2000 crore causing wazir X system to almost collapse. This event sparked a blame game and investors are pointing fingers toward their security system. Following this, Wazir X is also conflicting with its wallet infrastructure provider, Liminal Custody.
The Cyberattack and Initial Responses
On Thursday, WazirX, serving over 16 million users in India, announced a security breach affecting one of its storage wallets, and in response, the exchange immediately suspended all withdrawals of funds and crypto assets as a precautionary measure.
Contradictory Claims: WazirX vs. Liminal Custody
After the attack, Liminal Custody, which manages digital assets for Wazir X, claimed that none of their wallets were compromised. They said the breach involved an external multi-signature smart contract wallet…
WazirX disagreed, stating that a jointly operated multi-signature wallet with Liminal Custody, active since February 2023, was indeed hacked. This wallet needed six signatures to function: five from WazirX and one from Liminal Custody. Wazir X pointed out that Liminal Custody’s single signature was crucial for verifying transactions, suggesting shared security responsibility.
Details of the Breach and Responses
WazirX called the breach a “force majeure” event, meaning it was beyond their control. They noticed differences between the data shown on Liminal’s interface and the actual transactions. They believe the attackers changed the data to take control of the wallet and make unauthorized transfers…
In response, Wazir X quickly blocked the affected wallets and started helping users recover the stolen funds. They stressed their commitment to securing customer assets and rebuilding trust in their platform after the cyberattack.
Moving Forward: Security Measures and Community Impact
As investigations continue, both WazirX and Liminal Custody are being closely examined to clarify the breach and the measures to prevent future incidents, and the conflicting claims between the exchange and its infrastructure provider highlight the complexity and importance of protecting digital assets in the cryptocurrency world.
Conclusion
The breach at WazirX shows the ongoing challenges cryptocurrency exchanges face in keeping their security strong against advanced cyber threats. As we wait for more updates, this incident reminds us of the vulnerabilities in digital finance and the need for strict security measures everywhere in the ecosystem.
Also Read- WazirX Hacked: Launching Bounty Program to Recover Stolen Assets Amid Cyberattack
