WazirX Heist: Liminal's Systems at the Center of Investigation

WazirX Cyber Attack: Liminal's Infrastructure Questioned

The recent cyber attack on WazirX has sparked a complex investigation, with conflicting claims between WazirX and Liminal regarding the source of the breach. This incident underscores the critical need for robust security measures in the cryptocurrency industry, as both companies are working to recover stolen funds and restore services.

WazirX's initial investigation into a cyber attack on one of its self-custody multi-signature smart contract wallets found no proof of compromise within their own infrastructure. Instead, they pointed to Liminal’s multi-party computation (MPC) wallet as the potential source, suggesting a vulnerability in Liminal’s security protocols. However, Liminal denied any breach, attributing the hack to compromised devices on WazirX’s end. This conflicting narrative has complicated the investigation.

Liminal has engaged independent CERT-certified third-party experts to conduct forensic audits to ensure transparency and reassure stakeholders of their platform's security. They ensure that their infrastructure remains secure and emphasize the need for comprehensive security measures across platforms. This incident highlights the critical importance of robust security in the crypto space. 

Liminal Attributes Cyber Attacks to External Sources, Ensures Platform Security

Based on their internal investigations, Liminal has highlighted that the sophisticated attack likely came from an external source, not from within their systems. Liminal stated that- Our initial evaluation shows that Liminal's platform, infrastructure, wallets, and assets are secure. 

We reaffirm that our platform is functioning smoothly, processing transfers and withdrawals for all our customers. It continues to securely protect all assets, including substantial funds held by the affected customer, WazirX,  stated a Liminal spokesperson.

However, in a recent blog update, WazirX accused Liminal of failing to prevent fund withdrawals due to security lapses in its multi-party computation (MPC) wallet and firewall, which allowed transactions to non-whitelisted addresses. WazirX claimed that the breach originated from Liminal's infrastructure, while their systems showed no signs of malware or compromise.

Standoff Between WazirX and Liminal 

The situation has led to a standoff between WazirX and Liminal, with each disputing the other's claims. WazirX customers are anxious for the platform to resume services, especially during the current market bull run, as the suspension of trading and withdrawals is causing financial losses.

 Industry analysts suspect North Korea's Lazarus Group may be behind the hack, but confirmation is still pending.

Conclusion

The WazirX-Liminal cyber-attack has exposed major weaknesses in digital assets security thus creating a stand-off between the two firms. While both are in the process of trying to get their lost funds and resume services, the event brings into focus the need for enhanced security in the cryptocurrency market. The conclusion of this inquiry will probably hold long-term consequences for the progression of digital asset protection and management.

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