As a seasoned analyst with over two decades of experience in the financial industry, I find myself increasingly concerned about the latest developments surrounding the WazirX crypto exchange hack. The apparent connection between the founder of Liminal Custody, Mahin Gupta, and Nischal Shetty, co-founder of WazirX and investor in Pi42 Exchange, raises a troubling web of relationships that should not be ignored.
Approximately 25 days after the massive crypto heist that resulted in over Rs 2000 crore ($230 Million) of investor funds being stolen from the WazirX exchange, the affected investors have discovered a surprising link between WazirX and Liminal Custody.
Based on reports from several investors who were victims of the WazirX hack, Mahin Gupta – founder of Liminal Custody – is both an investor and advisor for Pi42 exchange, a subsidiary venture of Nischal Shetty, WazirX’s co-founder.
After the hack on July 18, WazirX acknowledged that Liminal Custody was responsible for the unauthorized access to their multi-signature wallet, resulting in the loss of funds.
What Happened on July 18 between WazirX and Liminal Custody?
On July 18th this year, an unidentified group of hackers successfully stole approximately 45% (equivalent to $230 million) of cryptocurrencies from the WazirX exchange, after gaining access to their multi-signature wallet.
As stated by WazirX, their multi-signature wallet has four separate key holders: three from the WazirX exchange and one from Liminal Custody, a company specializing in secure transaction handling. Recently, WazirX partnered with Liminal Custody, which is led by its founder Mahin Gupta.
Based on information from WazirX, the Ethereum wallet that suffered an attack on July 18, and the subsequent malicious transaction following the incident, were authorized or signed by three members who control the keys at WazirX and one individual responsible for the custody at Liminal.
After the attack, WazirX pointed the finger at Liminal Custody, accusing them of a breach in their multi-signature wallet. However, Liminal Custody has disputed these allegations and claimed no involvement in any misconduct.
WazirX hack victims point out correlation between Liminal Custody, WazirX and Pi42
Since the hack, investors who were victims on WazirX have been noticing an unusual connection between Mahin Gupta from Liminal Custody and Nischal Shetty, one of WazirX’s co-founders, with Pi42 exchange – another platform where Shetty is also a co-founder.
🚨 Something seems suspicious! If the breach at WazirX occurred, the responsibility might fall on either WazirX or Liminal Custody. The founders of WazirX are Nischal Shetty and for Liminal Custody it’s Mahesh Mungipura (as @mahingupta). In Pi42Exchange, both are listed as co-founder (Nischal Shetty) and investor (Mahesh Mungipura).
— Justice for WazirX Users (@IndiasCrypto) August 11, 2024
As an analyst, I’ve noticed that during the allegations of the hack incident on July 18, neither Liminal Custody nor WazirX openly acknowledged their shared interest in a third entity – Pi42 exchange. This lack of transparency could potentially raise questions about their actions and statements.
It appears that WazirX is pointing the finger at Liminal for a recent hack, but Liminal denies any fault and instead blames WazirX. However, this information might not be known to everyone. Interestingly, the founder of Liminal, Mr. Mahin Gupta, has an investment and advisory role in Pi42 exchange, which was founded by the same person as WazirX. This situation raises questions about who is actually at fault.
— Engineer PD (@engineerpdcrypt) August 11, 2024
As a concerned crypto investor, I’ve noticed that Mahin Gupta’s profile picture as “investor and advisor” on the Pi42 exchange platform has mysteriously disappeared from their website, following its widespread sharing among investors on various platforms like X. This development has undeniably added to the unease and apprehension within our community, leading some of us to question whether this could be an instance of an insider job or a scam. It’s crucial that Pi42 addresses these concerns promptly and transparently to maintain trust among its users.
They have taken down the profile of Mr. Mahingupta (and his picture) from Pi42Exchange, where Nischal and Mahingupta were working together. This suggests that something is amiss, and it’s crucial for the Central Bureau of Investigation to look into this matter. The truth needs to be uncovered. #JusticeForWazirXUsers #WazirX
— Justice for WazirX Users (@IndiasCrypto) August 13, 2024
It’s yet unknown when Nischal Shetty or WazirX exchange will formally communicate about the release of funds for their numerous investors, who find themselves in a holding pattern right now, as their funds are inaccessible.
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2024-08-13 10:13