The fallout from the July 2024 WazirX hack is heating up as Liminal, a multiparty computation (MPC) wallet provider, continues to point fingers at the exchange for the massive $230 million breach. Liminal recently doubled down on its accusations, following a forensic analysis that cleared its web infrastructure of any role in the attack.
WazirX Hacker Moves $23M In Ether
New data has surfaced, shedding light on the hacker’s movements. Spot On Chain revealed that the WazirX hacker moved 10,000 Ether (ETH) through multiple channels in an attempt to launder the stolen funds. This includes sending 5,000 ETH to Tornado Cash, a privacy tool notorious for obscuring crypto transactions. Another 5,000 ETH was transferred to a new wallet, making it increasingly difficult to trace the stolen assets.
In the last eight days alone, the hacker has laundered over 12,600 ETH, valued at approximately $30.13 million. Despite this, the hacker’s wallet still holds around $49.1K Ether, worth an estimated $115 million.
Ether’s Price Takes a Hit
The WazirX hack has had far-reaching consequences, not just for the exchange but also for the market at large. Ether’s price has dropped by 13% over the past 30 days, with the largest altcoin by market cap currently trading at an average price of $2,341. The price dip is a direct reflection of the shaken confidence within the crypto community following the massive exploit.
The July hack saw WazirX’s multi-signature wallet drained of $100 million worth of Shiba Inu (SHIB) and $52 million in Ether (ETH), amounting to 45% of the exchange’s total reserves. The breach has severely damaged the exchange’s reputation, leading to a liquidity crunch that the platform is still trying to recover from.
WazirX and Liminal Lock Horns
As the investigation into the hack continues, the blame game between WazirX and Liminal has escalated. In a public report, WazirX claimed it bore no responsibility for the breach, citing the findings of an audit conducted by cybersecurity firm Mandiant. However, Liminal fired back, commissioning Grant Thornton to conduct an independent review of its web applications, including a thorough examination of its user interface, frontend, and backend.
Initial findings from the review revealed discrepancies between the data shared by both WazirX and Liminal. This led investigators to believe that the breach could have originated from WazirX’s system or Liminal’s frontend. However, further probing cleared Liminal of any vulnerabilities in its transaction workflow, according to the forensic report.
Despite Liminal’s defense, WazirX has yet to formally respond to the latest allegations. The clash between the two parties has left customers in limbo, with the exchange scrambling to recover stolen funds while navigating a restructuring process to address liabilities with affected users.
With no resolution in sight, the feud between WazirX and Liminal looks set to continue, leaving industry watchers wondering who will ultimately take the fall for one of the most significant crypto hacks of 2024.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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