WazirX, one of India's leading cryptocurrency exchanges, is embroiled in a custody dispute with Liminal, a digital asset custody platform, following a significant cyberattack that occurred in July 2024. This incident has raised questions about the security measures in place and the responsibilities of both parties involved. The publication provides the following information: the ongoing legal battle could have implications for the broader cryptocurrency market in India.
Cyberattack Results in Major Financial Loss
The cyberattack resulted in a staggering loss of over $230 million, prompting WazirX to clarify its relationship with Liminal. In a recent interview, WazirX CEO Nischal Shetty stated that while the exchange utilized Liminal's software for its custody infrastructure, WazirX remained the primary point of contact for its users, indicating that the exchange was not directly responsible for the breach.
WazirX's Response to the Attack
WazirX asserts that the attack was executed through an external website used for fund management, distancing itself from any vulnerabilities in its own servers. In response, Liminal has issued a counterstatement, denying any responsibility for the breach and highlighting that WazirX still retains more than $175 million in assets on its platform.
Implications for Digital Asset Custody
This ongoing dispute underscores the complexities of digital asset custody and the importance of robust security protocols in the cryptocurrency industry.
In a recent development, Pakistani authorities dismantled an international investment fraud cartel, arresting 34 individuals involved in scams, highlighting the ongoing issues of cybercrime in the region. This contrasts with the custody dispute faced by WazirX, which raises further questions about security in the cryptocurrency space. For more details, see read more.
