#Liminal Custody on WazirX

[cryptorounder1]

Read more Blogs : Jamie Dimon | Bitcoin a Millionaire | Cryptos skyrocket

[cryptogirl2024]

WazirX Hacked: ₹2,000 Crore Crypto Heist Linked to Cybercriminal Network

Delhi Police arrested SK Masud Alam from West Bengal for his alleged role in a cyberattack on cryptocurrency exchange WazirX, resulting in the theft of ₹2,000 crore ($237 million). Investigators revealed Alam orchestrated the breach by creating a fake account under the alias Souvik Mondal, later sold on Telegram to M Hasan, who exploited WazirX’s hot wallet.

Though the attackers failed to breach the cold wallet, the incident exposed vulnerabilities in WazirX’s verification processes. Police suspect a larger cybercriminal network, seizing laptops of WazirX’s authorized signatories for further investigation into possible insider involvement.

The probe faced delays due to alleged non-compliance by Liminal Custody, WazirX’s wallet custodian, raising concerns over its transparency and security practices. Meanwhile, WazirX cooperated by providing KYC data and transaction logs, emphasizing the industry’s need for stringent security measures and tighter regulations.

[hindustanmorning]

WazirX delivers 175 million cryptocurrency deposits to 2,40,000 wallets, the majority of which are Chinese.

WazirX, an Indian cryptocurrency exchange, has already transferred USD 175 million crypto into 2,40,000 wallets, many of which are reported to be from a Chinese wallet provider that is not registered with the FIU (Financial Intelligence Unit) in India. Experts have questioned the safety of investments made with the aforementioned Chinese wallets. Coinswitch CEO Ashish Singhal and Liminal Custody…

[blockchainfeed]

Indian cryptocurrency exchange WazirX, which suffered a $230 million exploit in July, is ending its relationship with custody provider Liminal. #Blockchain #Crypto

[blockinsider]

Crypto Exchange WazirX Cuts Ties with Liminal Custody Following $230M Cyber Heist

Key Points

WazirX is ending its relationship with Liminal Custody after a $230 million security breach.

The Indian cryptocurrency exchange is transitioning its assets to new multi-signature wallets to enhance security.

WazirX, a cryptocurrency exchange based in India, has decided to end its partnership with Liminal Custody. This decision comes after a major security breach in July, which saw the theft of approximately $230 million. This amount represents nearly half of the total funds held by the exchange’s customers.

In an effort to improve security and prevent future incidents, WazirX has announced that it is transferring its assets from Liminal to new multi-signature wallets. Despite the security of its internal systems, the breach was linked to issues with Liminal’s custody services. The move to new wallets is a precautionary measure to ensure maximum protection for user assets following the July 18th incident.

Transparency and User Reactions

Once the migration is complete, WazirX plans to disclose a list of the new wallets to increase transparency for its users. The exchange has also provided a method for users to track all blockchain transactions related to the hack, enabling them to monitor the status of their funds.

Liminal Custody, in a comprehensive post-mortem of the hack, stated that the fault did not lie with their systems. Instead, it was a compromise of WazirX’s own devices. The multi-signature wallet system used by WazirX consisted of six signatories, including Liminal and members of the WazirX team. For the attack to be successful, the attacker only needed to compromise three of these signatories.

The incident involved an attacker initiating a valid transaction from WazirX’s devices. Liminal’s server provided a “safeTxHash” to confirm this transaction. However, the attacker replaced this hash with an invalid one, resulting in the transaction’s failure. Using signatures from other transactions, the attacker was able to approve a new transaction, which was successfully processed on the Ethereum network.

Restoring User Balances

Following the breach, WazirX faced criticism from users due to delays in fund withdrawals and perceived lack of transparency. The exchange’s co-founder has asked for patience as they work to resolve these issues and enhance security.

WazirX has recently stated that it is in the process of restoring user balances. The exchange will use transaction records from the time of the hack to determine which users are eligible for reimbursement. To ensure a secure transfer of assets, trading and withdrawal functions have been temporarily suspended.

In addition to restoring balances, WazirX is implementing extra security measures to prevent future breaches. The exchange’s commitment to transparency and robust user protection practices will be critical in restoring confidence and creating a safer trading environment.

[the-hacker-news]

WazirX Cryptocurrency Exchange Loses $230 Million in Major Security Breach

The Hacker News : Indian cryptocurrency exchange WazirX has confirmed that it was the target of a security breach that led to the theft of $230 million in cryptocurrency assets. "A cyber attack occurred in one of our [multi-signature] wallets involving a loss of funds exceeding $230 million," the company said in a statement. "This wallet was operated utilizing the services of Liminal's digital asset custody and http://dlvr.it/T9nRhB Posted by : Mohit Kumar ( Hacker )