As a seasoned researcher with years of experience in the dynamic world of cryptocurrency and blockchain technology, I find myself intrigued by this latest development between WazirX and Liminal Custody. The finger-pointing has been ongoing since the July 18 cyber hack, and the recent statement from Liminal Custody, backed by an audit from Grant Thornton, adds another layer of complexity to the case.
On Monday, Liminal Custody – previously associated with WazirX – issued a statement saying an independent third-party review found no discrepancies concerning the July 18 cyber heist worth approximately Rs 2000 crores that occurred on their platform. Moreover, according to the audit results, the suspected breach in the multi-signature wallet seems to have originated from within WazirX’s management.
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.
According to a statement issued by Liminal Custody on Monday, an audit carried out by Grant Thornton found that the cyber attack on July 18 may have been initiated from sources outside of Liminal’s own infrastructure and systems.
According to a representative from Liminal Custody, our initial findings show a discrepancy between the data provided by Liminal and the data received from the client’s systems. This could suggest two potential scenarios: either there may have been a security breach at the client’s end or within our own frontend systems, leading us to conduct an investigation to determine if our frontend systems were compromised in any way.
According to Liminal Custody, a review conducted by Grant Thornton found no inconsistencies on their part.
Recent assessments show that Liminal’s frontend, backend, and user interface (UI) have been thoroughly inspected and no signs of compromise or vulnerabilities related to transaction workflow have been discovered. This suggests that the chance of the problem arising from sources outside of Liminal’s infrastructure and systems has grown.
The representative from Liminal Custody clarified that the focus of the recent event is their self-custody wallet system. In this system, most of the keys controlling and managing these wallets are kept by clients on their own infrastructure. It’s important to note that Liminal cannot initiate any transactions; all transactions always start from our client’s end first.
As an analyst, I find it significant to bring attention to the ongoing dispute between Liminal Custody and WazirX management, following the July 18 hack. WazirX has accused Liminal of inadequately securing the multi-signature wallet that was compromised. Previous reports from The Crypto Times have highlighted connections between key figures; WazirX co-founder Nischal Shetty and Liminal Custody’s Mahin Gupta, as they are also associated with Pi42 exchange, a venture that Mr. Shetty is also a co-founder of.
Currently, WazirX users are urging for the Central Bureau of Investigation (CBI), India’s top investigative body, to launch an inquiry into both WazirX management and Liminal Custody. They aim to uncover the facts behind the situation.
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2024-09-09 13:25