Key Points
- Google subsidiary Mandiant’s forensic analysis found no evidence of compromise on WazirX’s transaction-signing laptops, suggesting the $235 million hack may have originated from Liminal’s infrastructure.
- WazirX is actively working on fund recovery and cooperating with investigators, while a detailed report from Mandiant is pending.
In a significant development following the $235 million hack of Indian cryptocurrency exchange WazirX in July 2024, a forensic analysis by Mandiant, a Google-owned cybersecurity firm, has cleared the exchange’s laptops of any compromise. This latest update sheds new light on the ongoing investigation and recovery efforts.
Mandiant’s Findings Shift Focus to Liminal
On August 19, 2024, WazirX announced that Mandiant’s investigation found no evidence of compromise on the three laptops used by WazirX team members for transaction signing. This revelation redirects attention to Liminal, the digital custody platform that managed the breached multi-signature wallet.
A WazirX spokesperson stated, “We have full faith in the investigating agency and shall cooperate with them to the fullest extent. We are actively working on recovering the stolen funds and are hopeful that those responsible will be brought to justice.”
This development follows WazirX’s earlier explanation that the breach occurred due to discrepancies between data displayed on Liminal and actual transaction contents on WazirX. The conflicting statements between WazirX and Liminal, reported in our August 8 coverage, now appear to lean towards WazirX’s initial assessment.
Ongoing Recovery Efforts and User Impact
As reported by Token Times AI on August 18, WazirX has prioritized solutions for both INR and cryptocurrency balances affected by the hack. The exchange previously announced plans to reverse trades made after July 18 and restore user account balances to their pre-hack state.
However, the complexity of the recovery process has become apparent, with WazirX citing the need for extensive legal analysis and partner collaborations. The exchange continues to urge users to be patient as they navigate these challenges.
Looking Ahead: Awaiting Detailed Report
While Mandiant’s initial findings provide crucial insights, a more comprehensive report is still forthcoming. This detailed analysis will offer a clearer picture of the hack’s mechanism and potentially guide WazirX’s plans for user reimbursement.
As this situation unfolds, it serves as a critical case study for the cryptocurrency industry, highlighting the importance of robust security measures and transparent recovery processes. The crypto community will be watching closely to see how WazirX navigates this crisis and what lessons can be learned for the broader industry.
