Liminal Denies Responsibility for WazirX Wallet Hack: Details
The recent hack of a WazirX wallet overseen by Liminal Custody has resulted in a loss of over $230 million, significantly impacting India’s crypto business. In a statement to Gadgets360, Liminal denied WazirX’s claims that the breach was due to a glitch in Liminal’s screening system. Over the weekend, Liminal stated that its forensic investigation found no evidence attributing responsibility for the attack to its systems.
Liminal Custody Statement
Based on internal investigations, Liminal has stressed that the sophisticated attack appears to have come from an external source, and not from within the company’s systems.
“Our initial assessment indicates that Liminal’s platform, infrastructure, wallets, and assets remain secure. We reiterate that our platform continues to operate seamlessly, processing transfers and withdrawals for all our customers. It also securely protects all assets, including significant funds still held on our infrastructure by the affected customer (WazirX),,” the company spokesperson told Gadgets360.
“This underscores the critical need for comprehensive security measures across all platforms,” the spokesperson added.
WazirX’s Accusations Against Liminal
In a blog update published last week, WazirX claimed that Liminal was unable to prevent the withdrawal of funds because its multi-party computation (MPC) wallet and firewall protection were unable to screen addresses that were not whitelisted.
The Mumbai-based exchange added that the flow of transactions to the hacker’s wallet was facilitated by a breach of Liminal’s infrastructure. Citing the results of its own internal investigation, WazirX claims that no malicious malware or breach of its own systems was identified.
The situation is unfolding dramatically as WazirX and Liminal find themselves in a stalemate, with both parties disputing each other’s claims. WazirX customers, meanwhile, remain hopeful that the exchange will soon resume services on its platform, as the market is currently in a bull run and the suspension of trading and withdrawal services on WazirX is causing them more financial losses.
WazirX partnered with Liminal Custody in January 2023 to manage its wallets. Currently, both parties are working with various members of the crypto community to try to recover the stolen funds.
Trading, withdrawal and deposit services on WazirX remain on hold. While industry analysts suspect that North Korea’s notorious Lazarus Group is behind this hack, confirmation of this remains to be seen.
