In the wake of a $230 million attack that took place last July, cryptocurrency exchange WazirX has decided to terminate its relationship with crypto custody service provider Liminal. The hacking incident resulted in the loss of 45% of the exchange’s total customer funds, sparking outrage among users who faced withdrawal issues and transparency concerns.
Who is Responsible?
Following the attack, both WazirX and Liminal blamed each other, leaving users uncertain about the security of their funds. WazirX claimed that no security breach occurred on their end but identified subsequent security issues on Liminal’s interface. Liminal, on the other hand, asserted that funds could have been moved immediately after the attack and that they provided full support to their clients during this period.
WazirX has initiated the process of moving customer assets to new multi-signature wallets to enhance security measures. The company emphasized that this step aims to maximize asset security and promised to publish the list of new wallets upon completion of the migration for greater transparency.
Users React
WazirX has faced significant criticism from users who could not withdraw their funds and expressed concerns over the exchange’s lack of transparency. Co-founder Nischal Shetty has requested patience from users while the issue is resolved, assuring them that extreme caution is being exercised during the asset migration process.
Key Takeaways
Important Insights:
- WazirX lost 45% of customer funds in a $230 million hack.
- Both WazirX and Liminal are blaming each other for security lapses.
- WazirX is shifting to multi-signature wallets for enhanced security.
- Users are concerned about transparency and have criticized the exchange.
- WazirX promises to publish the list of new wallets once migration is complete.
In response to the fallout, WazirX is striving to implement more secure storage methods and regain user trust by ensuring a transparent transition to new wallet systems. This situation underscores the critical importance of security and transparency in the cryptocurrency exchange industry.
Promises of Transparency
WazirX has pledged to continue taking steps towards transparency to rebuild customer trust and prevent similar incidents from occurring in the future. These measures are deemed crucial for restoring confidence in the cryptocurrency market.
This situation highlights the vital role of security in the crypto world and the impact of company actions on user confidence. The industry is closely monitoring how WazirX will navigate these challenges moving forward.
