On August 14, WazirX exchange management announced that they are ending terms with their former security partner Liminal Custody and moving all remaining funds from their custody, in the wake of Rs 2000 crore cyber hack on their multi-signature wallet. The July 18 WazirX hack had resulted in loss of 45% user funds and a bitter fall off between the exchange and Liminal Custody.
Now, it has come to The Crypto Times’ notice that WazirX management is yet to transfer the remaining 55% user funds from Liminal Custody’s multi-sig wallets despite publicly accusing them of failing to safeguard crypto funds. Liminal has refuted all allegations put by WazirX and maintained that the hack had occurred from WazirX’s end.
When approached, a spokesperson for Liminal Custody confirmed that the WazirX management is yet to move the remaining user funds from the custody of Liminal, despite the public fall-off.
As of today, a significant amount of their fund balances continue to remain in the wallet as they were before the breach. Furthermore as reiterated several times the customer is using Liminal’s self-custodial wallet software and holds majority of the keys (5 out of 6) in their own custody. In these self-custodial wallets, only they can initiate transactions and are also free to move assets without any involvement from Liminal or the Liminal key. We maintain that the Liminal platform remains secure and continues to securely and seamlessly process transactions worth millions.,”
said a spokesperson for Liminal Custody.
The latest revelation begets an important question as to why WazirX is yet to transfer user funds from Liminal despite two months post hack, if they continue to blame the latter for failure to prevent hack.
The Fall-Off Between WazirX and Liminal Custody Explained
Post the July 18 hack, the WazirX management had claimed that a forensic audit had shown that the laptops associated with WazirX were not impacted during the July 18 hack and the alleged breach occurred from Liminal’s end. WazirX co-founder Nischal Shetty had also blamed Liminal Custody for their alleged failure to safeguard user funds and announced that he is cutting ties with them.
A few weeks later, Liminal Custody also released a statement claiming that they conducted a forensic audit and found no breach either at the front end, back end, user interface or devices. They insisted that the Rs 2000 crore hack most likely occurred from WazirX’s end and that they had no access to the multi-sig wallets.
The WazirX management has proposed a moratorium in Singapore High Court to distribute the remaining user funds in a socialistic manner in which all users are supposed to take a hit. It remains to be seen whether WazirX will remove user funds from Liminal Custody’s wallets, given they have criticized their security features.
Also Read: WazirX Says Won’t Share Past Profits With Affected Users
