Cryptocurrency exchange WazirX has made explosive allegations against digital assets security firm Liminal Custody, claiming that a breach of their multi-sig wallet on July 18 led to a Rs 2000 crore loss of investor funds. Liminal Custody has refuted these allegations.
Incident Background
WazirX entered into a partnership with Liminal Custody for the security of their digital assets. However, a month after the hack, the two companies are engaged in a bitter duel while thousands of investors await the return of their funds. The new allegations from WazirX are expected to further delay the withdrawal process.
Companies and Investors Reactions
On Monday, WazirX claimed that an independent third-party analysis by 'Mandiant Solutions' revealed that three WazirX laptops involved during the multi-sig wallet signing process were 'uncompromised.' The forensic analysis report by Mandiant Solutions concluded that the issues related to the cyberattack 'originated from Liminal Custody.' WazirX's co-founder Nischal Shetty, who is under heavy public scrutiny, placed the blame for the hack squarely on Liminal Custody, their erstwhile partner. Investors are demanding an immediate withdrawal of funds from Shetty as 30 days have passed since the July 18 WazirX hack.
Connection Between WazirX and Liminal Founders
The Crypto Times has previously reported that there are other ties between WazirX’s co-founder Nischal Shetty and Liminal Custody’s founder Mahin Gupta. Nischal is a co-founder in another India-based crypto exchange ‘Pi42’ where Mahin is also an investor and advisor. Such close proximities between Shetty and Gupta and the recent fallout between the duo suggest that there is certainly more to the WazirX hack case than meets the eye.
As both sides continue to exchange allegations, investors remain uncertain about the return of their funds. Liminal Custody is expected to release an official statement soon, which may shed more light on the current situation.
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