$230 Million Stolen: Why Is Liminal Taking a Backseat?

$230 million in digital assets stolen by hackers!

News like this sends shockwaves through the crypto community, especially since crypto is still new to many. While hacks like this have happened before, this one is among the biggest in our country’s history.

Now, the crypto community is buzzing with questions. People are worried about their assets, the platform’s security, and how long it will take to recover the stolen funds. The trust, the confidence, everything has shaken.

In this crisis, WazirX, India’s leading cryptocurrency exchange, quickly stepped up, while Liminal’s passive response has raised serious concerns.

WazirX, known for its users’ trust and safety, as the breach occurred, WazirX acted swiftly. Since day one, they have been upfront, keeping their users in the loop with regular updates about their recovery efforts. They quickly paused deposits and withdrawals, got law enforcement involved, and even launched a bounty program to track down the stolen assets.

They also migrated the remaining assets from Liminal’s custody to more secure multisig wallets, ensuring users’ funds were protected from further risk. This move was more than just damage control; it demonstrated WazirX’s commitment to its community.

What has Liminal done till now?

Since the $230 million theft, Liminal has been quick to point fingers at WazirX, claiming the exchange is to blame for the breach. However, despite these accusations, Liminal hasn’t provided any solid evidence or conducted an independent third-party investigation to back up its claims.

While WazirX completed a forensic analysis with a globally renowned and leading cybersecurity and investigations firm, getting a green signal for their systems’ uncompromised status, Liminal has yet to produce a comprehensive report. Instead, they’ve focused on denying responsibility and questioning WazirX’s security measures, leaving many wondering why their safeguards failed.

In a surprising turn of events, Liminal Custody deleted a blog post about securing a $50 million insurance policy for user assets, which could be pivotal in the ongoing blame game. Liminal thought nobody would notice, but they didn’t know the community’s power. The big question now is: Can this deleted blog play a role in the recent cyberattack?

The difference between WazirX’s robust response and Liminal’s passive approach is striking. WazirX has shown what it means to be a responsible player in the crypto space, going above and beyond to control the situation. Liminal, however, has demonstrated that offering a service is not enough; accountability and active engagement are crucial when things go wrong.