WazirX and Liminal Custody Clash Over $230 Million Heist

WazirX and Liminal Custody, their wallet provider, are locked in a public dispute over who is to blame a month after a major crypto heist.

The troubled cryptocurrency exchange WazirX is blaming Liminal Custody, claiming that their wallet infrastructure was compromised in the $230 million loss. However, Liminal Custody is not resigning, questioning WazirX’s security measures and denying any wrongdoing.

The finger-pointing has escalated into a public spat:

• WazirX’s Accusations: WazirX insists that Liminal Custody is to blame for the breach, citing their role in managing the stolen multisig wallet. Liminal Custody has been accused of not following security protocols and possibly having an insider working alongside the hackers.
• Liminal Custody’s Defense: Liminal Custody insists that their systems were not compromised and denies any wrongdoing. They have questioned the security of WazirX’s own network infrastructure and operational custody controls in response to WazirX’s claims.
• Public Feud: Public verbal spats between the two businesses have resulted in accusations being exchanged and concerns being raised. Nischal Shetty, CEO of WazirX, has even voiced concerns about Liminal Custody’s security measures and raised the possibility of insider involvement.

The heist has significant implications for the crypto industry:

• Security Concerns: The incident has highlighted the industry’s potential vulnerabilities and has raised serious concerns about the security of cryptocurrency exchanges and wallet providers.
• Investor Confidence: Investor confidence in the cryptocurrency market could be eroded as a result of the ongoing dispute and the loss of funds, which could result in a decrease in trading activity.
• Regulatory Scrutiny: As authorities investigate the circumstances surrounding the breach and evaluate the need for stricter security measures, the heist may also attract increased regulatory scrutiny.

The crypto community is keeping a close eye on the drama as it develops during the investigation. The outcome of the dispute may have significant repercussions for the cryptocurrency industry’s future.

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