WazirX Terminates Partnership with Liminal Following Security Breach

WazirX Ends Partnership with Custody Provider Liminal

In a significant move following a devastating security breach, WazirX has announced the termination of its relationship with custodial service provider Liminal. This decision comes after a staggering $230 million was exploited in a cyberattack last month, resulting in a loss of approximately 45% of the total customer funds. The Indian cryptocurrency exchange shared this update in a post on X on Wednesday.

The fallout from the incident has seen both WazirX and Liminal trading blame for the exploit that occurred in July, leaving users uncertain about the safety of their assets. WazirX stated, “We are in the process of migrating the remaining assets held with Liminal to new multisig wallets.” They emphasized that this migration is a crucial step to ensure the maximum security of customer assets in light of the recent events. The exchange reassured users that while its own systems and interface remain uncompromised, the same cannot be said for the custodian’s interface following the incident on July 18th.

Liminal, on its part, has expressed willingness to cooperate during this transition. A spokesperson for Liminal commented, “The client could have removed the funds immediately post the incident.” They added, “They’ve always had the ability to exercise full control of wallets, regardless of Liminal or the Liminal key. We have supported and will continue to support the client in moving their wallets and assets as requested.”

Amidst the turmoil, WazirX has faced mounting criticism from users for the ongoing inability to withdraw funds, as well as for an alleged lack of transparency regarding the situation. Co-founder Nischal Shetty has urged customers to be patient as the exchange works diligently to resolve the issues at hand.

In their post on X, WazirX reassured users, “We are exercising extreme caution in how and when we move these assets, considering the complexity involved.” They highlighted the importance of taking necessary precautions to prevent a recurrence of such an attack during the fund migration process. Additionally, WazirX promised transparency by stating, “We will publish the list of all new wallets once the migration is complete.”