Liminal Rejects WazirX Hack Blame Over $235 Million

Liminal claims that even though WazirX blamed the custodian for the intrusion, it still had over $175 million in its hands 75 days after the theft.

Liminal, the digital custody partner of the compromised Indian cryptocurrency exchange WazirX, released a statement on the purported security breach amid the company’s current debt restructuring.

Liminal responded to WazirX’s alleged “disinformation campaign” with an update on October 22 explaining its involvement in the case.

According to the statement, WazirX still uses Liminal’s digital custody services and keeps millions of its assets on it even after accusing the company of being responsible for the $1235 million hack in July.

WazirX had $175 million with Liminal 75 days later after the hack.

According to Liminal’s statement, 75 days after the security issue, WazirX had over $175 million in assets on its platform. It also stated:

“Despite their accusations, as of today, approximately $50 million of their user assets continue to remain on wallets accessed via Liminal Infrastructure.”

the company stressed that only the WazirX team can carry out transactions using WazirX’s funds and that it is not permitted to start such operations.

WazirX provided the court with 240,000 wallet addresses.

Additionally, Liminal brought up WazirX’s decision to reveal details on 240,000 wallet addresses “by the debt restructuring process” in Singapore.

WazirX said in an announcement on October 17 that the disclosure was not only required by the court but also reflected the exchange’s dedication to openness and its goal of “becoming one of the most open and trusted exchanges.”

the company claims that data disclosure has been criticized as a possible disinformation campaign to mislead users and law enforcement.

“The cryptocurrency ecosystem is deeply divided and alarmed by the exchange’s comprehensive submission, which is 1,100 pages long,” the company said.

Liminal’s announcement followed CoinSwitch co-founder Ashish Singhal’s accusation that WazirX had transferred over $70 million in user cryptocurrency to international exchanges Bybit and KuCoin after a purported security breach in July.

Following the incident, we saw that a sizable portion of WazirX cryptocurrency had been transferred to exchanges, including Bybit and KuCoin. We currently have $72.12 million worth of cryptocurrency moving to Bybit and $1.5 million to KuCoin,” Singhal stated on X.