Cryptocurrency

2024

WazirX

<p>WazirX Cryptocurrency exchange made explosive allegations against Liminal Custody- a digital assets security firm- blaming them squarely for alleged breach of their multi-sig wallet on July 18 that led to loss of Rs 2000 crores of investor funds. Liminal Custody, on their behalf, have refuted the allegations made by WazirX and said that they will release an official statement soon.</p>
<p>WazirX had entered in a partnership with Liminal Custody for security of their digital assets and now, a month after the hack, the two companies are engaged in a bitter duel even as thousands of investors await return of their funds. As investors were awaiting a confirmation from WazirX regarding the initiation of funds withdrawal, the new set of allegations is set to further delay the process.</p>
<p>WazirX claimed on Monday that an independent third party analysis by ‘Mandiant Solutions’ revealed that three laptops of WazirX involved during the signing process of multi-sig wallet, were found “uncompromised.” WazirX further claimed that the forensic analysis report by Mandiant Solutions has concluded that the issues related to <a href="https://www.cryptotimes.io/2024/07/18/half-of-investors-funds-gone-from-wazirx-in-massive-breach/" rel="noopener noreferrer nofollow">cyber attack</a> “originated from Liminal Custody.”</p>
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   <p lang="en" dir="ltr">Google subsidiary <a href="https://twitter.com/Mandiant?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Mandiant</a> confirms WazirX Laptops were not compromised in the cyberattack.<br><br>Mandiant, a leading cybersecurity firm, and Google subsidiary has confirmed that the laptops used by WazirX team members during the recent $230M cyberattack were NOT COMPROMISED.<br><br>This… <a href="https://t.co/CNW77KZCE1" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/CNW77KZCE1</a></p>— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) <a href="https://twitter.com/WazirXIndia/status/1825419334476517383?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 19, 2024</a>
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<p>WazirX’s co-founder Nischal Shetty, who is under <a href="https://www.cryptotimes.io/2024/08/16/hundreds-of-wazirx-investors-to-file-police-complaints-against-exchange/" rel="noopener noreferrer nofollow">heavy public scrutiny</a>, chose to put blame of the hack squarely on Liminal Custody, their erstwhile partner. Investors have been demanding immediate withdrawal of funds from Shetty even as <a href="https://www.cryptotimes.io/2024/08/15/heres-why-wazirx-keeps-delaying-withdrawal-of-investor-funds/" rel="noopener noreferrer nofollow">30 days</a> have gone by post the July 18 hack of WazirX.</p>
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 <p><em>We’re glad that it’s all clear there is NO compromise on WazirX side. We’re yet to hear credible answers from Liminal on: (1. What led to the cyberattack? (2. What is the extent of the breach in their systems? (3. Were any insiders involved at their end? (4. Why/How did Liminal’s website show us a genuine transaction that was supposed to be signed and yet send incorrect payload for signing? (5. Why and how did their firewall end up allowing the transaction which was not to the whitelisted address? (6. Why and how did they end up signing and approving this malicious transaction?,” said Shetty, in a tweet on ‘X</em>‘.</p>
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<h2 class="wp-block-heading" id="customers-say-we-trusted-wazirx-not-liminal-custody">Customers say we trusted WazirX, not Liminal Custody</h2>
<p>In the wake of recent allegations made by WazirX against Liminal Custody, the investors of WazirX were quick to point out that they had trusted to invest in the cryptocurrency exchange and not in the security firm Liminal Custody.</p>
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   <p lang="en" dir="ltr">Enable INR Withdrawals <br><br>Your CEO has confirmed it is safe<br><br>But you are illegally holding it since a month and expect users to trust you guys? Hell nah!!<br><br>Repost if you agree 👍</p>— Payal Jha (@payaljha1995) <a href="https://twitter.com/payaljha1995/status/1825419697874968847?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 19, 2024</a>
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<p>Investors also criticized WazirX for allegedly trying to “buy time” by making fresh set of allegations against Liminal Custody and trying to delay the withdrawal process. Users also criticized WazirX for their “careless behaviour” in keeping 45% in just one multi-sig wallet.</p>
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   <p lang="en" dir="ltr">This report create further doubts of careless by wazirx team. <br><br>First – careless by Wazirx team to keeping 45% of user funds in 1 cold wallet.<br><br>Note – Customer trusted wazirx not liminal. So you guys are at fault. <br><br>Second – It’s a multisign wallet which requires minimum 4…</p>— Aditya Singh (@CryptooAdy) <a href="https://twitter.com/CryptooAdy/status/1825432983441977680?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 19, 2024</a>
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<p>Meanwhile, The Crypto Times reached out to Liminal Custody for a comment, who then refuted the allegations made by WazirX and said that they will be releasing an official statement soon. The report will be updated once the statement is made by Liminal Custody.</p>
<h2 class="wp-block-heading" id="the-strange-connection-of-wazirx-s-nischal-shetty-and-liminal-s-mahin-gupta">The Strange Connection of WazirX’s Nischal Shetty and Liminal’s Mahin Gupta</h2>
<p>The Crypto Times has reported in the past that there are other ties between WazirX’s co-founder Nischal and Liminal Custody’s founder Mahin Gupta. Nischal is a co-founder in another India based crypto exchange ‘<a href="https://www.cryptotimes.io/2024/08/13/pi42-exchange-safer-than-wazirx-both-have-same-co-founder/" rel="noopener noreferrer nofollow">Pi42</a>‘ where Mahin is also an investor and advisor. Such close proximities between Shetty and Gupta and the recent fall out between the duo tells us that there is certainly something more to the WazirX hack case than what meets the eye.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Also Read: <a href="https://www.cryptotimes.io/2024/08/13/wazirx-hack-mystery-the-pi42-link-of-liminals-gupta-wazirx/" rel="noopener noreferrer nofollow">WazirX Hack Mystery Deepens: The Pi42 link of Liminal’s Gupta &amp; WazirX</a></p>
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WazirX blames Liminal for Hack, Investors say we trusted WazirX not Liminal

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The Crypto Times

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