WazirX blames Liminal for Hack, Investors say we trusted WazirX not Liminal

As a seasoned analyst with years of experience in the crypto market, I have seen my fair share of partnerships gone sour and allegations flying left and right. The recent spat between WazirX and Liminal Custody is no exception, and it’s leaving a bad taste in the mouths of investors who are still waiting for their funds to be returned after the July 18 hack.


WazirX cryptocurrency exchange has accused Liminal Custody, a digital asset security company, of causing an alleged breach in their multi-signature wallet on July 18, which resulted in the loss of approximately 20 billion Indian rupees worth of investor funds. However, Liminal Custody has denied these accusations and promised to issue an official statement shortly.

WazirX has teamed up with Liminal Custody for the safekeeping of its digital assets. However, following a hack that occurred a month ago, the two companies are now embroiled in a heated dispute while thousands of investors anxiously wait for their funds to be restored. The investors have been eagerly anticipating a statement from WazirX about the commencement of withdrawals, but additional accusations are likely to prolong this process.

As an analyst, I can share that on Monday, WazirX announced findings from a third-party investigation conducted by Mandiant Solutions. According to their report, three laptops utilized during the multi-sig wallet signing process at WazirX were determined to be “uncompromised.” Furthermore, the analysis concluded that any cyber attack-related issues traced back to Liminal Custody.

Mandiant, a well-known Google affiliate in the realm of cybersecurity, has verified that the laptops utilized by WazirX staff during the recent $230M hacking incident remained UNTOUCHED.

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 19, 2024

In response to intense public scrutiny following the July 18 hack of WazirX, co-founder Nischal Shetty has shifted responsibility onto Liminal Custody, a previous business partner. Despite the passage of thirty days since the incident, investors are urgently pressing for the withdrawal of their funds from Shetty, as they grow increasingly impatient.

Shetty stated via a tweet on ‘X’ that he is relieved there’s no room for compromise with WazirX. However, some questions remain unanswered from Liminal:

Customers say we trusted WazirX, not Liminal Custody

Following the accusations from WazirX towards Liminal Custody, it’s worth noting that WazirX investors have emphasized their investments were directed towards the cryptocurrency exchange, rather than the security firm Liminal Custody.

As a researcher, I am excited to announce that we have ensured the safety of INR (Indian Rupee) withdrawals. However, I understand your concern about the legality of our previous holding of these funds for a month. To alleviate any doubts, I would like to assure you that we have taken all necessary steps to comply with regulations and operate within the law. We value your trust and are committed to maintaining transparency in our operations. Let’s move forward together! 🌟

— Payal Jha (@payaljha1995) August 19, 2024

Critics, including investors, have accused WazirX of attempting to postpone issues by levying new accusations against Liminal Custody and prolonging the withdrawal process, which some users also find problematic. Additionally, there has been criticism towards WazirX for their seemingly negligent approach in storing 45% within a single multi-signature wallet.

As someone who has been in the cryptocurrency industry for quite some time now, I have always prioritized the security of my funds and trusted platforms that share this same commitment. However, this recent report raises concerns about the level of care taken by Wazirx team regarding user assets.

— Aditya Singh (@CryptooAdy) August 19, 2024

In the meantime, we contacted Liminal Custody for their perspective on the claims made by WazirX. They denied these allegations and have promised to issue an official statement shortly. This article will be updated as soon as Liminal Custody releases their statement.

The Strange Connection of WazirX’s Nischal Shetty and Liminal’s Mahin Gupta

Previous articles from The Crypto Times have suggested potential connections between WazirX co-founder Nischal Shetty and Liminal Custody’s founder Mahin Gupta. It has been revealed that they are both associated with another Indian crypto exchange called Pi42, where Mahin serves as an investor and advisor. The close relationship between these two individuals, coupled with the recent disagreement between them, suggests that there may be more to the WazirX hack incident than what initially appears.

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2024-08-19 12:21