Based

WazirX

WazirX’s estranged security partner Liminal Custody released a statement on Monday claiming that an independent, third party audit has absolved them of any discrepancies related to July 18 cyber hack of Rs 2000 crores. Liminal Custody also claimed that the breach on the multi-sig wallet most likely occurred from WazirX’s management end, as per the audit findings.
The development comes weeks after WazirX management released a statement blaming Liminal Custody for the breach of their multi-sig wallet, claiming that the latter was entrusted with the security of their wallet.
As per a statement released by Liminal Custody on Monday, the firm has conducted a third party audit by Grant Thornton, which revealed that the July 18 hack incident likely originated from “outside Liminal’s infrastructure and systems”.&nbsp;
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “Our preliminary reports identified a mismatch between the data shared by Liminal and the payload received from the client’s systems. This indicated two potential possibilities: a potential compromise either at the client’s end or within our frontend systems, resulting in the need for investigation into whether there was any compromise in our frontend systems,” said a spokesperson of Liminal Custody.
</blockquote>
Liminal Custody said that an audit report by Grant Thornton has absolved them of any discrepancies from their end.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “We now have multiple reviews which conclude that Liminal’s frontend, backend and user interface (UI) are found with no evidence of any compromise or vulnerabilities related to the transaction workflow. Based on these findings, the likelihood of the issue originating from outside Liminal’s infrastructure and systems has increased.”
 “We reiterate that the product in question for this incident is our self-custody wallet infrastructure, wherein a majority of the private keys that control and operate the wallets remain with our clients on their infrastructure. In this product, Liminal can never initiate a transaction and all transactions always originate at our client’s end first,” said the spokesperson for Liminal Custody.
</blockquote>
It is pertinent to note that Liminal Custody and WazirX management have had a fallout since the July 18 hack and the latter had <a href="https://www.cryptotimes.io/2024/08/19/wazirx-blames-liminal-for-hack-investors-say-we-trusted-wazirx/" rel="noopener noreferrer nofollow">blamed</a> Liminal for their alleged failure to secure the multi-sig wallet that was<a href="https://www.cryptotimes.io/2024/08/19/breaking-liminal-stands-ground-blames-wazirx-security-for-hack/" rel="noopener noreferrer nofollow"> breached</a>. The Crypto Times had earlier reported that WazirX co-founder Nischal Shetty and Liminal Custody’s Mahin Gupta have links with another organization,<a href="http://WazirX Hack Mystery Deepens: The Pi42 link of Liminal’s Gupta &amp; WazirX" rel="noopener noreferrer nofollow"> Pi42 exchange</a>, which is also co-founded by Nischal.
Meanwhile, the users of WazirX have now demanded an investigation by Central Bureau of Investigation (CBI)- India’s premier agency- to conduct a probe against both WazirX management and Liminal Custody to get to the bottom of the truth.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/09/02/nischal-says-wazirx-not-responsible-for-crypto-funds/" rel="noopener noreferrer nofollow">Nischal says WazirX Don’t Know Who is Responsible for User Crypto Funds</a>
</blockquote>

Liminal Custody insists Rs 2000 crore hack was from WazirX’s end

The Crypto Times

Other articles published on Sep 9, 2024

AI and Cloud Computing Could Increase the Value of Crypto Mining Centers Fivefold

Binance Executives' Money Laundering Trial Advanced to September 2 in Nigeria Amid Controversy

What are NFTs? Understanding Non-Fungible Tokens

Plume debuts tokenized ‘Mineral Vault’ amid hunger for RWA yield, CEO says

Elon Musk and Tesla Win Legal Battle as Dogecoin Lawsuit is Thrown Out

The Fastest and Easiest Ways to Convert Crypto into Cash

Join our free newsletter for daily crypto updates!