WazirX and Liminal Custody Clash Over Rs 2000 Crore Hack

WazirX Users Demand CBI Investigation Over Rs 2000 Crore Hack

WazirX, one of India’s leading cryptocurrency exchanges, and its former security partner, Liminal Custody, are at the center of a major dispute following a massive cyber hack. 

On July 18, 2024, a breach led to the theft of Rs 2000 crore, leaving thousands of users without access to their funds. WazirX and Liminal Custody are pointing fingers at each other for the security failure, while frustrated users call for a formal investigation by the Central Bureau of Investigation (CBI).

What’s the News

Liminal Custody recently released a statement after conducting a third-party audit, which they say clears them of any wrongdoing related to the hack. 

According to Liminal, the audit was carried out by Grant Thornton, a well-known auditing firm, and it found no evidence of any breach or vulnerabilities within Liminal’s infrastructure. 

The report suggested that the WazirX hack likely originated from WazirX’s end, possibly due to issues within their own management or systems. Liminal Custody claims that their multi-signature wallet, which was involved in the hack, operates with private keys mostly controlled by WazirX, meaning that any transaction would have had to start from WazirX’s infrastructure, not theirs.

WazirX, on the other hand, had previously accused Liminal Custody of failing to secure the multi-signature wallet, placing the blame on them for the breach. The two companies have had a strained relationship since the hack, and tensions have only escalated with the release of Liminal’s audit findings. 

To further complicate matters, it was reported earlier that WazirX co-founder Nischal Shetty and Liminal Custody’s Mahin Gupta have connections to another crypto project, Pi42 Exchange, raising more questions about their involvement in the incident.

As the blame game continues, lakhs of WazirX users remain without their funds, with little clarity on whether they will be recovered.

Final Thoughts

The ongoing conflict between WazirX and Liminal Custody has left many users feeling frustrated and uncertain. While both companies continue to accuse each other, the truth behind the hack remains unclear. With the stakes high and users’ funds at risk, many are now urging the CBI to step in and conduct a thorough investigation to determine who is responsible. Until then, the future of WazirX’s customers’ funds hangs in the balance.

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