WazirX Works to Restore Trade Balance After July Security Breach

Indian crypto exchange WazirX has been working to restore the balance between trades conducted on its platform in the July 18-21 period. This will mean that all the trades during this period on the WazirX platform will be nullified, as it had suspended withdrawals on July 18 following a security breach.

The breach saw hackers steal around $230 million in customer funds from the exchange. Among the stolen assets were around $100 million in SHIB tokens.

“We are nearing the completion of restoring the balances for trades that happened between 18 and 21 July. This will undo all trades carried out on the WazirX platform following the stoppage of withdrawals on 18 July 2024, at 1 PM IST,” the exchange said in a post on X.

WazirX also said it is working with legal experts to find an effective method to re-enable withdrawals. The exchange also shared updates about its Bounty Program, which it said had attracted 344 bounty hunters including security professionals and ethical hackers. WazirX had offered a $23 million bounty to get its stolen assets back.

But how is the exchange planning to safeguard its current crypto assets?

“We are in the process of migrating the remaining assets held with Liminal to new multi-sig wallets,” it said in another post. “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” the post noted.

Earlier the WazirX team noted that they were still awaiting the results of a third-party audit when asked who was responsible for the security breach.

WazirX, Liminal, and their other associate entities have been the subject of legal complaints in India following the hack. WazirX indicated that the breach of their multi-sig wallets was due to a vulnerability in Liminal’s interface, specifically mentioning that while its own systems remained secure, the issue stemmed from Liminal’s custodial interface.

Earlier, WazirX had announced a controversial plan to divide the losses among its users by adjusting balances—a move that has sparked considerable pushback from the community.

WazirX said it is being extremely cautious while moving assets. It is also likely to publish a list consisting of new wallets after it is done migrating from Liminal. Despite these measures, the plan to nullify trades and restore balances seems uncanny as it leaves people questioning WazirX’s approach to managing the fallout from the breach.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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