In response to recent remarks by WazirX founder Nischal Shetty regarding the Mandiant report, which both seemed to absolve WazirX of any fault in the $230 million hack and asked Liminal some pointed questions, Liminal Custody has issued an official statement in an exclusive correspondence with CryptoNewZ.
Notably, Shetty had denounced Liminal for their involvement in the hack and raised critical questions about Liminal’s security measures and systems in place. In turn, Liminal expressed their concerns about the methodology and transparency of Mandiant’s audit process and cleared the air on their own third-party investigations.
Liminal Custody’s Remarks
The central message of Liminal’s Custody’s response was that WazirX’s public release of the audit report was not sufficient. “We cannot comment on the statement put out by WazirX due to the lack of any information on the scope and methodology of the audit they have conducted.”
They were quick to point out that only one of the six keys involved in the multi-sig wallet was with Liminal, while the other five were with WazirX itself.Liminal also addressed the questions raised about the integrity of their systems by asserting that their preliminary audit reports “categorically indicate no breach in our front-end or UI.”
To further clarify this situation, Liminal added, “We have empanelled more than one reputed auditor and are open to empanelled additional auditors, including Mandiant, to conduct the UI audit as well.”
Users Left in Limbo
While WazirX and Liminal Custody argue over who is responsible for the hack, the real victims are caught in a difficult position. Thousands of users are still uncertain about when they will regain access to their funds, and the ongoing blame game between the two companies is only adding to their frustration.
The lack of clear communication and transparency from both sides has left users feeling abandoned despite having trusted WazirX to protect their investments.
The crux of the victim’s position is that users had trusted WazirX, and not Liminal Custody with their funds. It is essential for WazirX to take full responsibility in this case. Up until now, it seems like WazirX is trying to shift the blame for the hack to Liminal. However, their trust in Liminal was not the fault of their users.
People deposited their money in WazirX, and that’s all they know. No one had heard of Liminal until after the hack. So, no one is interested in the story. It’s been over a month, and people just want their money back. https://t.co/BGo6birvS7
— RK Gupta (EarnWithRK) (@earnwithrk) August 19, 2024
To regain the trust of the affected users, WazirX has to release the complete report and methodology of the Mandiant audit. Moreover, WazirX needs to reopen withdrawals as users are growing increasingly anxious, given that it’s been over a month since they were halted.
Liminal, too, should publicly address the users’ concerns and release their independent audit reports soon. Clear and open communication from both companies is crucial to restoring trust among their users and the wider crypto community.
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Source: https://www.cryptonewsz.com/liminal-custody-challenge-wazirx-crypto-hack/