WazirX ends custody partnership with Liminal, to migrate remaining assets after $230-mn hack

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Hacked crypto exchange WazirX on August 14 said that it is in the process of migrating its remaining assets held with custody partner Liminal to new multisig wallets, reiterating that the $230-million cyberattack happened through the custodian’s interface.

Multisig wallets are crypto wallets which require two or more private keys to unlock and move funds. In a security breach last month, country’s largest crypto exchange WazirX lost nearly 45 percent of its holding assets.

On a post on X, the exchange said, “We are in the process of migrating the remaining assets held with Liminal to new multisig wallets. 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.”

Liminal is a wallet infrastructure and digital asset custody solution provider, which counts Zebpay, Pi42 (also co-founded by WazirX CEO Nischal Shetty), Central Bureau of Investigation (CBI) and Himachal Pradesh (HP) Police as its customers among others.

WazirX added that while it is exercising extreme caution in how and when it moves these assets, considering the complexity involved, it can’t provide an exact timeline for the same immediately.

“For transparency, we'll publish the list of all new wallets once the migration is complete. Additionally, we acknowledge your concerns about the stolen assets,” the exchange said.

Earlier in an interview with Moneycontrol, founder and CEO Shetty had said that the multisig wallet that got hacked on July 18 required four people to sign in to unlock – including three from WazirX’s end and one from Liminal’s end.

Also read: Distress call: Hacked WazirX dials Binance for lifeline