WazirX Undergoes Crucial Maintenance to Restore User Balances After Massive Hack
The Hack: A Severe Blow to WazirX
The security breach, which came to light on July 18, led to the theft of a staggering $234.9 million in cryptocurrency assets. The breach was initially detected by Web3 security firm Cyvers, which noticed unusual transactions emanating from WazirX’s Safe Multisig wallet on the Ethereum network.
The incident has not only severely impacted the operational capabilities of the exchange but has also significantly dented the trust of its user base. In response, WazirX has, therefore, taken swift action to secure the remaining assets and, thus, rectify the discrepancies caused by unauthorized transactions.
Restoration and Transparency
The breach has sparked a dispute over responsibility between WazirX and Liminal, the latter being the service provider for the compromised wallet. Liminal, while denying any compromise of their platform, suggested that the exploit was due to compromised machines at WazirX. On the other hand, WazirX maintains that the breach stemmed from vulnerabilities in Liminal’s interface.
In a proactive measure, WazirX announced on August 14 that it is transferring the remaining assets held with Liminal to new multisignature (multisig) wallets. These wallets, which require multiple signatures to authorize transactions, offer enhanced security against unauthorized access. The original multisig setup included six authorized signers, with one from Liminal and five from WazirX.
The Hacker’s Maneuvers
Further complicating the scenario, the hacker responsible for the $235 million exploit has reportedly converted nearly $150 million worth of altcoins to Ether. This strategy is likely an attempt to evade potential freezing or blacklisting of the stolen funds.
For more insights into security breaches and their impact on the crypto world, consider reading about the recent surge in crypto phishing scams and how they are reshaping security protocols.
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