WazirX Severs Relations With Liminal Custody After Major Breach

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


  1. Details of the Incident
  2. WazirX’s Response
  3. Liminal’s Defense

  4. WazirX has announced the termination of its relationship with custody provider Liminal Custody following a significant security breach in July 2024, during which $230 million—approximately 45% of total customer funds—was stolen.

    Details of the Incident

    The breach, which occurred on July 18, involved the draining of funds from a Gnosis SAFE multisig wallet. This wallet was initially deployed by WazirX before its partnership with Liminal and later integrated into Liminal’s platform. The incident has sparked a public dispute between the two companies, with both parties attributing responsibility to the other for the exploit.

    WazirX’s Response

    In a post on X, WazirX detailed the steps they are taking to secure the remaining assets. The exchange is migrating funds from Liminal to new multisig wallets, emphasizing that this move is essential to ensure the highest level of security for users’ assets. WazirX assured its users that while their interface and systems remain uncompromised, concerns were raised about the custodian's interface following the breach.

    WazirX also promised to exercise extreme caution during the asset migration process, citing the complexity involved. Although no exact timeline was provided, the exchange committed to transparency by announcing that a list of all new wallets will be published once the migration is complete. Additionally, WazirX shared a link for users to view the on-chain list of affected assets and related transactions performed by the attacker.

    Liminal’s Defense

    On July 19, 2024, Liminal responded with an in-depth report aiming to clarify the events leading to the breach. Liminal asserted that their infrastructure remains uncompromised and that the compromised wallet was imported into their platform by WazirX for operational ease. The report sought to defend Liminal’s position, although the company acknowledged that such breaches inevitably lead to scrutiny of all parties involved.

    This incident highlights the importance of security in the cryptocurrency sector and the need for careful selection of asset custodians.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Optimism Releases Required Batcher Update v1170

Optimism has announced the release of opbatcher v1170, which is mandatory for operators using the batching infrastructure for OP Stack chains.

user avatarAndrew Smith

NEAR Developers Release First Candidate for nearcore 2140

The NEAR developers have published the first release candidate for nearcore 2140, introducing significant protocol and database changes.

user avatarJacob Williams

Lido Completes Winddown of Regular Simple DVT Clusters

Lido has successfully completed the winddown of its regular Simple DVT clusters, marking a significant step in the decentralization of its validator operations.

user avatarZainab Kamara

Avalanche Schedules Helicon Network Upgrade for September 22

Avalanche has announced the Helicon network upgrade for its mainnet, set to activate on September 22 at 1500 UTC.

user avatarSon Min-ho

Uniswap Proposes Protocol Fee Rollout to Circles Arc Blockchain

Uniswap Labs has introduced a proposal to extend its protocol fee collection and UNI burn infrastructure to the Arc blockchain.

user avatarAyman Ben Youssef

Aave V4 Now Live on Circle's Arc Blockchain

Aave V4 has officially launched on Circle's newly established Arc blockchain, featuring key assets such as USDC, EURC, cirBTC, and WETH.

user avatarTando Nkube

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.