🔥 WazirX Hack: Is Liminal Responsible for the Lost Funds?
posted 22 Oct 2024
Liminal, a platform providing institutional crypto custody solutions, has released an official statement about the WazirX breach, labeling the situation a "ongoing disinformation campaign."
Liminal Source: liminalcustody.com
The discussion centers on the massive $235 million hack that affected the Indian cryptocurrency exchange WazirX on July 18, 2024.
A week following the incident, WazirX’s team disclosed the results of their official investigation. The report stated that WazirX’s own systems were not breached, but instead pointed to their partner, Liminal Custody, which provides Self-Custody services, as the “weak link.”
Liminal’s representatives rejected any suggestion of flaws in their infrastructure, but WazirX consistently claimed that the scammers had used Liminal to transfer the stolen user funds.
This long-standing conflict is entering a new phase.
Liminal’s team pointed out that WazirX, during the debt restructuring proceedings, disclosed information on 240,000 user cryptocurrency wallet addresses.
This massive 1,100-page disclosure has sparked controversy in the Web3 community, with users accusing WazirX of “attempting to spread disinformation to confuse both the court and its clients.”
Liminal representatives explained that most of the addresses in question were “hot” online wallets, and only a handful of the “warm” or “cold” wallets were actually managed through their infrastructure.
Post-hack, these wallets held crypto assets amounting to around $300 million. By the end of October, about $50 million of those assets were still housed on the Liminal platform.
This indicates that despite WazirX’s public claims of contract termination, the exchange was still utilizing Liminal’s infrastructure to manage its assets.
Liminal stresses that its role is strictly that of a self-custody service provider and points out that it is unable to initiate transactions for WazirX or its clients.
Faced with the ongoing controversy and the lack of answers regarding the security violation, Liminal has opted to fight back against disinformation, affirming its dedication to transparency and the protection of users in the crypto space.
While we have historically preferred to let our work speak for itself, we cannot allow misleading narratives to go unchallenged when they threaten the integrity of our industry and the trust of our stakeholdersLiminal concludes.
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