WazirX Restores Balances Post $235M Hack Amid Ongoing Security Measures

• WazirX plans maintenance to restore balances after a $235 million cryptocurrency hack, with services down from August 15 to 16.
• The hack led to a dispute between WazirX and Liminal over responsibility, complicating recovery efforts and trust restoration.
• WazirX enhances security by migrating assets to new multi-signature wallets, ensuring better protection for user funds.

Indian crypto exchange WazirX has outlined maintenance plans to restore account balances and reverse trades impacted by a recent hack. According to an X post, the maintenance is scheduled from 6:00 PM IST on August 15 to 2:00 AM IST on August 16. During this period, all WazirX services will be temporarily unavailable as the exchange seeks to address discrepancies caused by the breach.

On July 18, WazirX was hacked, leading to the theft of $235 million in cryptocurrency assets. The breach was initially detected by Web3 security firm Cyvers, which identified several suspicious transactions originating from WazirX’s Safe Multisig wallet on Ethereum. This hack has significantly impacted the exchange, leading to immediate measures to secure remaining assets and address user concerns. 

Restoration and Responsibility Dispute

WazirX’s decision to undergo maintenance is driven by the need to restore account balances and reverse trades made after the withdrawal stoppage on July 18 at 1:00 PM IST. The exchange aims to minimize the financial impact on users and restore trust in its platform. Additionally, a dispute has emerged between WazirX and Liminal regarding responsibility for the breach. While Liminal asserts that its platform was not compromised, WazirX claims the vulnerabilities existed within Liminal’s interface. Liminal has released a report suggesting that the exploit resulted from compromised WazirX machines, further complicating the situation.

Enhanced Security Measures

In response to the hack, WazirX has announced migrating remaining assets held with Liminal to new multi-signature wallets. This step is crucial to ensure the maximum security of assets moving forward. The exchange is committed to transparency and plans to publish a list of all new wallets after the migration. A multi-sig wallet, which requires multiple signatures to validate transactions, will enhance the security of WazirX’s platform.

Meanwhile, the hacker responsible for the $235 million breach has reportedly converted nearly $150 million worth of altcoins into Ether. This move appears to be an attempt to avoid having the stolen funds frozen or blacklisted. The ongoing situation highlights the importance of security measures and vigilance in the cryptocurrency industry.