- WazirX submitted 240,000 wallet addresses to a Singapore court, causing confusion and raising concerns in the crypto world.
- Liminal clarified its role, revealing that WazirX didn’t use key infrastructure features that could have reduced the breach’s impact.
- Despite publicly blaming Liminal, the platfrom continued using its platform, managing over $175 million in assets post-hack.
The crypto world has been thrown into chaos because WazirX handed over 240,000 wallet addresses to a Singapore court. This, together with the fact that Liminal has submitted an extensive document of over 1100 pages, has left people questioning the position of the self-custody infrastructure provider in the whole affair and that is why Liminal has finally stepped in to explain itself.
According to a recent report, Liminal, which has custody services for WazirX, has asked the community to read the information given by each party and come to their own conclusion. From the addresses provided by WazirX, Liminal found out that most of the wallets were hot wallets. On the other hand, only a few of the Cold and hot Wallets were connected with the infrastructure.
WazirX’s Missed Security Features
These wallets had large amounts of money post breach, however, Liminal stated that its connection with WazirX was only software for a few of the wallets. However, the platform did not leverage several features of Liminal’s architecture that if applied would have greatly reduced the impact of this incident.
After the security breach, platform pointed its finger at Liminal and posted on social media that it had fired them in August 2024. But Liminal disclosed that WazirX went further to continue leveraging on its platform to manage more than $175 million in assets for 75 days after the hack. Despite WazirX ceasing control of these wallets in June, the exchange has around $50M in user funds locked up in wallets that can still be accessed through Liminal’s infrastructure.
Liminal’s Transparency Commitment
Unlike WazirX’s reaction, Liminal mentioned that Radiant Capital had been very open after a similar hack. Radiant Capital issued a detailed post mortem analysis of the events that led to the security breach and the measures which were taken to prevent the loss of funds from devices and hardware wallets. While Radiant provided the same level of transparency that platform has not been able to do so far and has instead tried to pass on the buck.
Liminal has remained quite passive during the course of the controversy but has now chosen to assert itself. The company reaffirmed its commitment to user privacy and security, assets protection and pledged to combat fake news with facts. Liminal will continue to honor the trust of its clients and ensure the integrity of the larger cryptocurrency space as it evolves.
