Liminal Custody, a crypto custody service provider known for offering decentralized custody solutions, is currently facing significant backlash from WazirX customers. Recently, Liminal Custody disabled the comment section on its posts on X (formerly Twitter) to block an influx of negative and abusive messages.
Four months ago, WazirX’s cold wallet was hacked, resulting in the loss of 50% of customers’ funds. Following this incident, WazirX and Liminal Custody publicly blamed each other for alleged negligence that they claimed enabled the hack. Since then, WazirX customers have increasingly expressed their anger in the comment sections of Liminal Custody’s posts, leading Liminal Custody to restrict comments to prevent further abusive remarks.
Some users even alleged that WazirX and Liminal hired a third-party paid auditor whose findings appeared biased in favor of both companies.
FraudYou and wazirx both hired paid auditors to make clean report for hack.Na breach tumhare yha se hua na wazirx ke laptop compromise hue, Fault mey to users hy.Taash k mahal zada samay tak nhi tikte
— Sunny (@Sunny68035912) November 4, 2024
Indian crypto users on X criticized Liminal Custody’s decision to restrict comments, accusing the company of evading accountability for the WazirX hack. They claim this tactic is an attempt to avoid answering customer concerns.
Waah, @liminalcustody ne bhi comments band kar diye!Ye sahi hai, pehle paisa lekar bhaag jao aur jab users sawal puche to comments band kar do. pic.twitter.com/ez5OK6LzvE
— Justice for WazirX Users (@IndiasCrypto) November 4, 2024
Liminal Custody vs. WazirX
The primary party responsible for the WazirX hack incident remains unclear, as the third-party auditor has stated that Liminal’s systems were secure and free from vulnerabilities. Initially, WazirX leadership accused Liminal Custody of negligence, while Liminal countered by suggesting that WazirX leadership might have granted unauthorized access to the hacker. Since then, WazirX has distanced itself from Liminal Custody.
Last month, Liminal Custody reported that WazirX still holds $50 million worth of cryptocurrency on its platform. However, Liminal claims it no longer has control over these assets, as passwords required to access them are held by WazirX leadership.
Status of the contractual relationship.Despite claims of terminating the relationship in the media, WazirX continued using Liminal’s infrastructure for months. Until October 3rd (~75 days after the incident), WazirX continued to access over $175 million in assets via our…
— Liminal Custody🚀 (@liminalcustody) October 22, 2024
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