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.
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.
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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.
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