As a seasoned crypto investor with over a decade of experience navigating the volatile and often mysterious world of digital assets, I find myself both relieved and cautious after reading about the Grant Thornton audit findings on Liminal Custody regarding the WazirX hack.
According to an investigation conducted by Grant Thornton, there was no indication that Liminal Custody’s system played a role in the $230 million WazirX security breach.
According to Grant Thornton’s audit, it appears that the $230 million hack on WazirX did not stem primarily from Liminal Custody, suggesting instead that the breach occurred “beyond the boundaries of Liminal’s system,” as stated in a blog post dated September 9.
In July, a security vulnerability was exploited, resulting in unauthorized access that drained over $230 million worth of cryptocurrencies from the system.
Previously, WazirX, now using multi-signature wallets, raised concerns about inconsistencies between Liminal’s user interface and transaction details. Nevertheless, a review by Grant Thornton apparently uncovered no signs of infrastructure breach in Liminal’s system. However, Liminal Custody has yet to disclose the results of this audit publicly.
After performing an extensive evaluation on Liminal’s infrastructure, Grant Thornton has shared with us their findings. They confirm that both the frontend and backend structures of Liminal are secure, showing no signs of breaches or weaknesses in the transaction process flow.
Liminal Custody
No breach from Liminal side
Liminal pointed out that inconsistencies in the data transmissions between its system and the client’s could indicate two potential culprits for the security incident: flaws in the client’s network infrastructure or issues with their frontend management systems. The organization also mentioned they are yet to receive a comprehensive evaluation from their auditors.
The company noted that its multi-signature wallet model ensures that client keys remain with customers, adding that users “can never initiate a transaction and all transactions always originate at our client’s end first.”
After the security breach, WazirX proposed a strategy called “shared loss approach,” under which users would have had access to 55% of their funds, while the exchange would keep 45% in Tether (USDT) equivalent tokens. However, this idea sparked significant controversy among users who felt that the exchange was trying to dodge full accountability for the losses caused by the hack. Consequently, WazirX had to withdraw the plan and asked for additional time to come up with a different solution.
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2024-09-09 17:27