The Ongoing Saga of WazirX and Liminal: A Tale of Accusations and Digital Custody
Liminal Responds to Accusations
On October 22, Liminal issued a statement aimed at clarifying its role and addressing what it described as a “disinformation campaign” by WazirX. The statement highlighted that despite WazirX’s allegations pointing towards Liminal for the breach, the exchange continues to utilize Liminal’s digital custody services. Astonishingly, WazirX retained more than $175 million in assets with Liminal 75 days post-hack, with around $50 million of user assets still managed through Liminal’s infrastructure.
Liminal emphasized its operational boundaries, stating that it does not have the authority to initiate transactions involving WazirX’s funds. This capability rests solely with the WazirX team, which controls the execution of such transactions.
Transparency or Disinformation?
The disclosure, which spanned over 1,100 pages, has ignited debates within the cryptocurrency community, raising concerns over the intentions behind such extensive data sharing.
Further Allegations from CoinSwitch Co-founder
Adding to the controversy, Ashish Singhal, co-founder of CoinSwitch, has raised alarms over WazirX’s actions post-hack. Singhal alleged that a substantial amount of WazirX’s crypto was transferred to global exchanges Bybit and KuCoin following the breach. Specifically, he claimed, “We have observed a large chunk of WazirX crypto has been moved to exchanges such as Bybit and KuCoin post the incident. Notably, we have identified the movement of $72.12 million worth of crypto to Bybit and $1.5 million funds to KuCoin.”
This revelation has escalated concerns and added another layer of complexity to the ongoing saga. As a result, the movement of funds and the transparency of WazirX’s operations have come under scrutiny, which may ultimately impact its credibility.
Looking Ahead
The situation between WazirX and Liminal highlights the intricate and often precarious nature of digital asset management and custody in the blockchain space. As the cryptocurrency community watches closely, the outcomes of this case could set precedents for security, transparency, and the operational conduct of digital exchanges.
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As the legal proceedings and investigations continue, the cryptocurrency market remains vigilant, awaiting clear resolutions and the strengthening of security measures that could redefine trust and operational standards in the digital asset exchange landscape.
