Liminal, a company that specializes in securing cryptocurrency wallets, has responded to accusations from WazirX about its role in a $235 million hack. WazirX has submitted 240,000 wallet addresses to the Singapore court, blaming Liminal for some of the issues.
This 1,100-page submission has sparked debate in the crypto community, with Liminal addressing what it considers a disinformation campaign.
Liminal claims that WazirX shared a list of 240,000 wallet addresses, many of which are “hot wallets,” frequently used for transactions. Some wallets managed by Liminal held significant sums of money for days or even months following the hack.
Liminal clarified that its role with WazirX was limited to providing a software subscription service. It noted that WazirX was not utilizing several key features of Liminal’s platform that could have enhanced security.
These features include hot wallets and smart refill transaction capabilities, which might have prevented the misuse of cold wallets in ways that compromised signatures.
Liminal added that, despite WazirX’s public statements about terminating their contract after the breach, WazirX continued to use its services long after. Even 75 days post-breach, over $175 million in assets remained in Liminal-managed wallets, with approximately $50 million still on the platform today.
Liminal reiterated that it only provides the infrastructure and does not have the ability to transfer or initiate any transactions. Only WazirX has that capability.
Comparison with Another Hack
Liminal compared the WazirX breach and a recent security issue with Radiant Capital, where attackers used similar tactics. Unlike WazirX, Radiant Capital was praised for its transparency, openly admitting weaknesses in its systems and providing a detailed explanation of the attack.
Liminal criticized WazirX for not adopting the same transparent approach, accusing the company of shifting blame without fully acknowledging its own security shortcomings.
Read also: Radiant Capital hacker moves $52 million in stolen funds
Liminal emphasized its commitment to transparency and accuracy in the crypto industry. While WazirX continues to allege Liminal’s involvement in the hack, Liminal remains determined to protect its reputation and provide factual information.
The company has collaborated with auditors to verify that the attack did not originate from its systems. They are also assisting WazirX in recovering funds and withdrawing assets still stored in Liminal’s wallets.
