 Liminal challenges WazirX’s accusations after $235M security breach 
2024-10-22

Amid the ongoing debt restructuring of the hacked Indian cryptocurrency exchange WazirX, its digital custody partner Liminal issued a statement addressing the alleged security breach. 
On Oct. 22, Liminal released an update responding to what it called a “disinformation campaign” by WazirX and clarified some information about its role in the matter.
The statement claimed that despite accusing Liminal of causing the $235 million breach in July, WazirX continues using its digital custody services, keeping millions of its assets on Liminal.
WazirX held $175 million with Liminal 75 days after the hack
In its statement, Liminal said that WazirX held more than $175 million in assets on its platform 75 days after the security incident. It added:
Cointelegraph approached WazirX for a response to Liminal’s claims but did not receive a response by publication.
Liminal emphasized that it cannot initiate transactions involving WazirX’s funds, stating that only the WazirX team has the ability to execute such transactions. 
Liminal mentions WazirX’s submission of 240,000 wallet addresses to the court
Liminal also mentioned WazirX’s move to disclose information on 240,000 wallet addresses “pursuant to the debt restructuring process” in Singapore.
Announcing the news on Oct. 17, WazirX said the disclosure was not just a court requirement but also the exchange’s commitment to transparency and effort to “become one of the most open and trusted exchanges.”
According to Liminal, data disclosure has been widely criticized as a potential disinformation campaign designed to confuse both users and legal authorities.
“The exchange’s exhaustive submission spanning 1,100 odd pages has sparked intense debate and concern within the cryptocurrency ecosystem,” Liminal stated.
Liminal’s statement came shortly after CoinSwitch co-founder Ashish Singhal accused WazirX of transferring more than $70 million in users’ crypto to global exchanges Bybit and KuCoin following the alleged security breach in July.
“We have observed a large chunk of WazirX crypto has been moved to exchanges such as Bybit and KuCoin post the incident. As of now, we have identified the movement of $72.12 million worth of crypto to Bybit and $1.5 million funds to KuCoin,” Singhal wrote on X.