As a seasoned researcher with a knack for uncovering truths hidden beneath layers of information, I find WazirX’s response to be somewhat reassuring but not entirely convincing. The company’s emphasis on their multi-key holder system and the verification of transactions through on-chain data is commendable, yet it still leaves room for speculation.
WazirX addressed the allegations and worries brought up by the cryptocurrency community about a significant data breach that impacted assets valued at more than $230 million (approximately ₹2000 crore).
Hello! I’d like to clarify a point in the analysis. Contrary to what was stated, WazirX never had just one key holder for its Ethereum wallet. In reality, there have always been three separate WazirX key holders and one from Liminal, who together sign all transactions on the attacked Ethereum wallet, as per our current setup since the move to Liminal.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 2, 2024
The supporters of cryptocurrency are supporting a legal action known as Public Interest Litigation (PIL), aiming to make WazirX responsible for the security breach and provide clarity about the incident and the involvement of crucial figures in it. To clear these accusations, WazirX should reveal the identities of the three individuals who authorized the hack.
TruthLabs has shared a detailed discussion about X, suggesting that potential vulnerabilities in WazirX’s security might have played a substantial role in the reported losses.
In reaction to the Public Interest Litigation (PIL) accusation, the company clarified that multiple individuals have access to the company’s security protocols, and no single person holds control over the funds.
As a researcher delving into the intricacies of WazirX’s operational structure, I’d like to correct a misconception that has been circulating. Contrary to some claims suggesting that a single individual, possibly co-founder Nischal Shetty, holds exclusive control over the multisig wallet, this is not the case. In fact, WazirX’s security system is designed in such a way that multiple key holders are involved, ensuring a decentralized and secure approach to wallet management.
As an analyst, I can confirm that WazirX’s transaction authorization process involves the use of four keys. Three of these keys are held by different WazirX key holders, while the fourth is in the possession of Liminal. This structure has been consistently employed for all transactions within the Ethereum wallet under attack.
WazirX pointed out that the suspicious transaction which caused the security incident was authenticated by no less than four different digital signatories: three from WazirX and one from Liminal. They emphasized that this fact can be independently confirmed through publicly accessible blockchain data, and not just based on their own assertions.
WazirX kindly asks the community to make sure information shared is correct and verified, helping to avoid the dissemination of false news.
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2024-08-02 18:29