Wazirx breach raises questions over Liminal’s involvement

Liminal Custody responded to allegations and misinformation linked to the security breach at Wazirx (CRYPTO:WRX), asserting its non-involvement in the incident. 

In an update titled “Wazirx Incident Update – Response to Ongoing Disinformation Campaign,” the custodial firm aimed to clarify its role after Wazirx experienced a hack in July, resulting in a reported loss of over $230 million. 

Liminal emphasized it had no control over the wallets in question and criticized Wazirx for failing to implement vital security measures that could have prevented the breach. 

Despite publicly blaming Liminal and announcing the termination of their partnership in August 2024, Wazirx allegedly continued to use Liminal’s infrastructure to manage user funds. 

According to Liminal, around $50 million in Wazirx user assets still remain accessible via Liminal’s platform. 

The response came after Wazirx submitted a list of 240,000 wallet addresses to a Singapore court, prompting concerns within the crypto community. 

Liminal reported combing through the list, noting that most of the addresses belonged to hot wallets, while a few were warm or cold wallets managed through its infrastructure. 

The firm clarified that these wallets held approximately $300 million for several days and around $177 million for several months following the breach. 

Liminal stressed that, contrary to Wazirx’s accusations, it had no authority to initiate transfers or transactions. 

The custody provider also pointed out that Wazirx did not adopt key features such as smart refill transactions, which would have safeguarded cold wallet signatures.

At the time of writing, the WazirX price was $0.1193.