- WazirX’s hack was traced to issues in Liminal’s interface.
- The exchange has not issued a timeline on the asset migration or when it will allow users access to their funds.
Indian crypto exchange WazirX has announced its split with Liminal, the custody solution provider it relied on to store its clients’ crypto assets. The exchange was hit with 2024’s second biggest hack as hackers ransacked its multisig cold wallets in July, draining over $230 million worth of digital assets. That amounted to 45% of its assets under management (AUM).
This incident has now pushed WazirX to terminate its integration of Liminal’s custody solution as it moves to adopt other multisig wallets. “We are in the process of migrating the remaining assets held with Liminal to new multisig wallets,” the exchange stated in an X post. It continued, “This step is essential to ensure maximum security of the assets in light of recent events. While we believe our interface and systems remain uncompromised, the same cannot be said for the custodian’s interface post the July 18th incident, prompting this precaution.”
WazirX looks to take maximum precautions while migrating the hefty sums stored in its Liminal-based infrastructure by “exercising extreme caution.” It has not let users know when it will complete the asset movement. Nevertheless, it promised them that asset safety is its “top priority.”
Customers Are Yet to Gain Access to Their Assets
As the exchange takes action to implement new custody solutions, users remain disgruntled about not being able to access their funds. One WazirX user mentioned, “It’s been almost a month, and WazirX users are still waiting for a response.” They asked it to release at least 55% of user funds, citing how numerous customers face “urgent needs” and further mentioned, “We urge you to take swift action to resolve these issues and provide the necessary support to your users.”
The platform’s co-founder, Nischal Shetty, requested users to wait, saying, “These efforts take time, please bear with us as we navigate through this difficult period.”
