The WazirX Hack: A Tangled Web of Blame and Recovery Efforts
Blame Game Between WazirX and Liminal
Following the breach, both WazirX and Liminal have been quick to deflect responsibility. The slow pace of internal investigations has only compounded the uncertainty surrounding the recovery of the stolen funds. In a recent development, rival exchange CoinSwitch has initiated legal action against WazirX to recover approximately $6.2 million, representing 2% of its funds.
In response to the escalating situation, WazirX sought a 30-day extension for its internal investigation through a moratorium application. However, this move garnered minimal support from its user base, with only 441 users backing the appeal.
Independent Audits Yield Mixed Results
To clear its name, Liminal underwent an independent audit by Grant Thornton, which found no evidence of compromise in Liminal’s digital infrastructure. Concurrently, WazirX enlisted Google subsidiary Mandiant to investigate potential compromises in its systems. Mandiant’s findings echoed those of Grant Thornton, indicating no direct compromise of WazirX’s systems.
Bartosz Barwikowski, a security expert from blockchain auditing firm Hacken, suggested that authorities might withhold details of the attack due to ongoing criminal investigations or because the attacker left no traceable footprint in the system.
Yongjin Kim, CEO of Asian derivatives trading platform Flipster, speculated that the attack could involve manipulation during the signing process, highlighting the need for additional security layers beyond multisignature policies.
Binance Denies Acquisition Claims
Binance emphasized that WazirX is owned by Zanmai Labs, registered with the Indian Financial Intelligence Unit, and highlighted the misleading statements by WazirX’s team regarding their relationship.
Continued Movement of Stolen Funds
The hacker’s main address still holds over $72 million in various tokens, predominantly in ETH, posing ongoing challenges to recovery efforts.
As the situation unfolds, the crypto community remains on edge, watching closely how WazirX navigates these turbulent waters. The incident not only highlights the vulnerabilities faced by crypto exchanges but also the intricate challenges involved in digital asset recovery.
For more insights into the challenges of web3 recruitment and the importance of robust security measures in the crypto space, explore our detailed discussions on navigating web3 recruitment amidst crypto calamities and the crucial role of security-savvy recruitment.
