WazirX, a cryptocurrency exchange, and Liminal Custody are currently involved in a $230 million dispute, leaving customers in a state of uncertainty. Liminal Custody has stated that three WazirX wallets were compromised leading up to the exploit. On the other hand, WazirX claims that a discrepancy on Liminal’s interface caused the loss and has filed a police report regarding the incident.
According to security firm Elliptic, North Korean hackers are suspected to be behind the hack, adding another layer of complexity to the situation. The exploit has resulted in over $67 million in cryptocurrency being lost to hacks and exploits in February alone, as reported by Immunefi.
The breach has raised concerns about the security of funds for users of both WazirX and Liminal Custody. WazirX explained that the exploit was related to a multisig wallet using Liminal’s digital asset custody service, highlighting discrepancies between the data displayed on Liminal’s interface and the actual contents of the transactions.
Liminal, however, has denied any breach in its infrastructure and assured users that all wallets, including WazirX’s, are secure. They stated that the attack was targeted at a specific Gnosis Smart Contract Multi-Sig wallet, indicating a sophisticated and well-planned operation.
In response to the incident, WazirX has filed a police report and engaged with the Indian Computer Emergency Response Team (CERT-In) to address the security breach. The stolen funds account for a significant portion of WazirX’s holdings, representing more than 45% of its $500 million assets, as reported in June.
Despite attempts to reach out for comment, Liminal has not responded to inquiries regarding the exploit. The involvement of North Korean hackers has added complexity to the situation, raising concerns among legal experts about the prevalence of such attacks.
As the investigation into the $230 million dispute continues, both WazirX and Liminal Custody are working to address the security concerns raised by the exploit. The incident serves as a reminder of the risks associated with cryptocurrency exchanges and the importance of robust security measures to protect users’ funds.
