WazirX, Liminal Custody Blame Each Other as $230M Crypto Exploit Leaves Customers Stranded

As a seasoned cybersecurity analyst with extensive experience in investigating cryptocurrency hacks, I have closely followed the ongoing saga between WazirX and Liminal Custody regarding the recent $230 million exploit. Based on my analysis of the available information, I believe that both parties are trying to shift blame for the attack.

Yesterday’s $230 million cryptocurrency heist involving WazirX and Liminal Custody has left users in limbo as both companies point fingers at one another, providing no clear information on the safety of their digital assets.

In a recent announcement on platform X, Indian cryptocurrency exchange WazirX revealed that an exploit they experienced was linked to a multisig wallet utilizing Liminal’s digital asset custodial service. The root cause of this issue was attributed to a “mismatch between the information shown on Liminal’s user interface and the true details of the transaction.”

Limital assured that their system remained secure, as no intrusion had occurred and all wallets, including WazirX’s, continued to be protected. A multisignature wallet operates under the condition that multiple individuals must authorize a transaction for it to be completed.

In a recent blog update, Limital stated that there is no security vulnerability or breach in their infrastructure, wallets, or assets. Regrettably, it was discovered that three victims’ machines had been infiltrated and used to introduce malicious code into certain transactions. This suggests a highly advanced, meticulously planned attack aimed at a specific Gnosis Smart Contract Multi-Sig wallet.

Today, a report was filed with the police by the affected exchange, and they also reached out to the Indian Computer Emergency Response Team (CERT-In). Over 45% of the exchange’s $500 million assets have been stolen, as stated in their transparency report from June. According to crypto security firm Elliptic, it is believed that North Korean hackers are responsible for this breach.

Liminal did not respond to a request for comment.