Summary:
- Restoring Balances: WazirX plans to restore all user balances following a $235 million hack in July 2024, reversing trades made after the withdrawal suspension.
- Hack Details: The breach involved suspicious transactions linked to WazirX’s Safe Multisig wallet on Ethereum, detected by Web3 security firm Cyvers.
- Discrepancy in Data: The hack was linked to discrepancies between WazirX’s transaction data and the information displayed on the digital custody platform Liminal.
WazirX, a major Indian cryptocurrency exchange, has announced plans to restore the balances of all platform accounts after a significant security breach resulted in a $235 million hack in July 2024. The exchange will also undo all trades carried out after the withdrawal suspension on July 18, aiming to regain user trust and stabilize the platform.
The first indications of the hack came on July 18, when Web3 security firm Cyvers detected suspicious transactions involving WazirX’s Safe Multisig wallet on Ethereum. Multisignature wallets, or multisig wallets, require multiple signatures to process a cryptocurrency transaction, adding an extra layer of security. In this case, WazirX’s multisig wallet had six signatories, with one from Liminal and five from WazirX.
WazirX reported that the breach stemmed from discrepancies between the data displayed on the digital custody platform Liminal and the actual transaction contents on WazirX. While Liminal employees claimed that the hack did not compromise their platform, WazirX maintained that Liminal’s systems were indeed implicated. Liminal had previously suggested that the breach was caused by compromised WazirX machines.
As WazirX works to restore user balances and undo the affected trades, the incident underscores the importance of robust security measures in the rapidly evolving world of digital assets. The exchange’s efforts to address the breach demonstrate its commitment to maintaining user trust and platform integrity.
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