Wazirx, the Indian cryptocurrency exchange, recently experienced a security breach that resulted in the theft of over $230 million. In response to this incident, Liminal Custody, the company responsible for managing user funds on the exchange, has released an update addressing the allegations and misinformation surrounding the breach.
Liminal Custody clarified that while Wazirx initially blamed them for the incident, the exchange continued to use Liminal’s infrastructure to manage user funds. Liminal emphasized that they had no control over the wallets involved in the breach and criticized Wazirx for not implementing key security measures that could have prevented the breach.
In their update, Liminal addressed the confusion and concerns that arose from Wazirx’s submission of 240,000 wallet addresses to a Singapore court. Liminal stated that they, like others in the industry, reviewed the list of wallet addresses disclosed by Wazirx and found that a majority of them were hot wallets, while only a handful were warm/cold wallets managed through Liminal’s infrastructure.
Liminal also disputed Wazirx’s accusations that they were responsible for the breach. According to Liminal, Wazirx initially blamed them and publicly claimed to have terminated their contract, but in reality, the exchange continued to access and manage user funds through Liminal’s infrastructure. Even 75 days after the hack, Wazirx still held over $175 million in assets on Liminal’s platform, and approximately $50 million of their user assets remained on wallets accessed via Liminal Infrastructure.
Contrary to Wazirx’s accusations, Liminal stressed that they had no ability to initiate transactions or transfers as Wazirx controlled the wallets. Liminal also pointed out that Wazirx failed to adopt important infrastructure features, such as smart refill transactions, which could have prevented the leak of cold wallet signatures.
Overall, Liminal’s analysis and response shed light on deeper issues surrounding the Wazirx security breach. The update aimed to provide clarity and transparency amid the ongoing disinformation campaign surrounding the incident.