Crypto news is buzzing with a hack in the amount of $230 million. Liminal Custody, the digital management platform under fire, however isn’t leaving in silence. Liminal Custody went heavy in return fire against WazirX, the most popular cryptocurrency exchange in town, shoving the full burden at their doorstep. What triggered this massive breach in security, and why WazirX is into the bullseye?
In this article we shall go into details, scrutinize the accusations, and find out how the two companies are dealing with the crisis.
What is the Hack? What Happened?
The speed at which cryptocurrencies operate makes security paramount in this fast-paced world. Even the most secure wallets will not be exempt from such attacks. In this respect, Liminal Custody found itself in the middle of an enormous breach, wherein hackers ran off with $230 million in digital assets. A hack that has taken the whole crypto world.
Liminal Custody is one of the authoritative players in the insecure custody solution. Liminal Custody reacted promptly on the spot, blaming all the incidents on one shoulder and showing the other shoulder. It claimed that insecurity flaws with WazirX were mainly responsible for this breach.
Liminal Custody
Liminal Custody did not take much time to respond. In their official statement, they acknowledged the breach but clearly stated that they hold WazirX partly responsible. The focus keyword, WazirX, appears multiple times in their explanation as they underlined the role of the exchange in the breach.
Liminal Custody claims that vulnerabilities in WazirX’s security compromised the breach of sensitive information. While Liminal Custody has been touted as having the most advanced security, they clarify that the vulnerability in WazirX’s system provided a backdoor, which the hackers exploited.
The statement of liminal custody reads: “We have always boasted of our security infrastructure. However, the vulnerability and the weaknesses in WazirX’s platform opened up a window that was way beyond our control.”
WazirX
WazirX: A people exchange in the news
WazirX is one of India’s most active cryptocurrency exchanges. The company has reportedly signed up millions of users globally. It is known to offer an extensive variety of digital assets that are accessible for trading purposes and also boasts to be user-friendly. WazirX has been embroiled in controversies previously, but mostly related to security issues.
This time, allegations against liminal custody have made the WazirX focus keyword once again prominent. There continues discussion around the exchange and its platform, facing serious accusations.
The company has yet to release an official statement on the matter, although sources close to it suggest that they have sufficient reason to defend themselves. WazirX has relied on millions of users using the platform; hence, its reputation is on the line.
The Blame Game: Who’s Responsible?
Now that the hacking event is done, the blame game’s begun. There has been much discussion among members of the cryptocurrency community since Liminal Custody called out WazirX. A simple question for many, though: Who is responsible for the hack?
Liminal Custody hints at WazirX’s failure in security. According to some experts, WazirX is not the only culprit. Two sides may be equally responsible here. Its security was quite strong in themselves but probably was not good enough to resist the breach fully. WazirX’s vulnerabilities would certainly be at play, though.
The key word, WazirX, is repeated in the case since the role of the exchange is evaluated now that the two companies are resorting to damage control to salvage what was destroyed while determining what went wrong.
How WazirX is Handling the Situation
Thus, WazirX’s response to the allegations determines public opinion. They have barely said anything, but insiders claim they are working on an internal probe. The focus keyword, WazirX, will most surely find a place in their future statements as they handle the accusations put forth by Liminal Custody.
Crypto exchanges do not shy away from security breaches, and WazirX has faced less prominent cases earlier. But this is certainly the biggest hack ever linked to the platform. How WazirX will address this crisis in the future will make or break it in the highly competitive world of cryptocurrency exchanges.
H2 Fallout for the Crypto Ecosystem
A crypto hack for an astonishing $230 million has been sending shock waves all through the crypto space. Both Liminal Custody and WazirX are major players in this space, and for some, this incident raises questions on the robustness of the overall security of digital assets.
Investments in cryptocurrencies are leaving people worried about the safety of their investments. If even a big exchange like WazirX and a custodian service like Liminal can be hacked to such an extent, what do you say for the smaller, not so secure exchanges? WazirX again drives the focus keyword as customers start demanding better security features from the exchanges.
Conclusion
Both WazirX and Liminal Custody have miles to go in cleaning up the mess. For liminal custody, it’ll be to regain the trust of their clients. Their attempt to shift the blame to Wazirx has raised many an eyebrow, but if proven true, it could shift the narrative in their favor.
For WazirX, things may only get worse. The focus keyword will be WazirX as the exchange tries to clear their name. Strengthening security and being more transparent with users will be key to redeeming their trust.
These two companies are at great stake, and how they tackle this will define their futures in the world of cryptocurrencies.
