Transparency and Communication: WazirX's Approach For Liminal's Fault

WazirX and Liminal Custody clash over responsibility for the $230 million hack, leaving users worried. While WazirX is exploring every option possible to recover the stolen funds, Liminal questions WazirX's security without any solid proof.

In tough times like the massive $230 million theft, transparency and communication with the community serve as the basic principles. However, it often faces challenges when not all players consistently uphold these fundamental values.

The recent fight between WazirX and Liminal Custody over taking responsibility for the unfortunate event and communicating with the users is a stark reminder of the importance of transparency and communication in the Web3 space.

Both companies have taken dramatically different approaches.

WazirX acted swiftly. They issued a preliminary report, collaborated with law enforcement agencies, regularly updated their users, shut down the fake social media accounts, launched a bounty program (offering a 10% reward of the recovered funds to ethical hackers), and have worked towards INR and crypto withdrawals. They have already enabled the first phase of INR withdrawals for its users.

On the other hand, Liminal Custody's response has been alarmingly silent. Instead of addressing the crisis directly, Liminal pointed fingers at WazirX, avoiding responsibility. This silence only deepens suspicion and damages trust in their platform.

To reassure the users and reduce their anxiety, the WazirX leadership team hosted a live YouTube session to address user concerns directly and inform them about future steps. Meanwhile, Liminal's minimal response—a blog post and a tweet—did little to address the severity of the situation, further eroding confidence in them.

While continuing its recovery efforts by collaborating with over 500 crypto exchanges, WazirX also partnered with a globally renowned and leading cybersecurity and investigations firm for a thorough forensic analysis and received a report showing no evidence of compromise. This proactive approach contrasts sharply with Liminal's inaction, which included the suspicious deletion of a blog post about a $50 million insurance policy pointed out by an X user.

According to the latest updates, WazirX enabled INR withdrawals in phases. However, the community is left questioning why Liminal remains silent if they truly believe they are not at fault.