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WazirX and Liminal Custody in Blame Game After $230 Million Exploit

Explore the fallout from the $230 million exploit involving WazirX and Liminal Custody. Delve into the blame game as both parties respond to the incident, analyzing the implications for security in the cryptocurrency industry.

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WazirX and Liminal Custody Blame Game Following $230 Million Exploit

The recent exploit involving WazirX and Liminal Custody, which resulted in a staggering loss of $230 million, has sparked a heated exchange of allegations between the two firms. This situation has left users uncertain about the security of their investments and funds.

In a statement posted on X, the Indian cryptocurrency exchange WazirX attributed the exploit to a multisig wallet that utilizes Liminal’s digital asset custody service. According to WazirX, the attack was triggered by a “discrepancy between the data displayed on Liminal’s interface and the actual contents of the transaction,” raising concerns about the reliability of the custody service.

On the other hand, Liminal has firmly denied any breach of its infrastructure. The company reassured users that all wallets, including those managed for WazirX, remain secure. They noted that a multisig wallet requires multiple signatures to authorize any transaction, which is intended to enhance security.

“There is no breach in Liminal’s infrastructure, wallets, or assets,” Liminal stated in a blog post. “Unfortunately, three of the victim’s machines have been found to be injecting malicious payloads into the transaction, indicating a sophisticated, well-planned, and targeted attack on one specific Gnosis Smart Contract Multi-Sig wallet.”

In response to the incident, WazirX has filed a police report and has engaged with the Indian Computer Emergency Response Team (CERT-In) to investigate the matter further. Notably, the stolen funds represent over 45% of WazirX’s total holdings, which were reported to be around $500 million according to a transparency report from June.

Adding to the intrigue, crypto security firm Elliptic has suggested that North Korean hackers may be implicated in this exploit, raising concerns about the potential involvement of state-sponsored actors in cryptocurrency theft.

Liminal has yet to respond to requests for further comment on the situation, leaving many questions unanswered for affected users.

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