With the WazirX drama continuing through a restructuring process in Singapore, Liminal claims the exchange’s finger-pointing at it was detrimental to the ecosystem’s trust.
Liminal, the storage solution provider that WazirX used, has clapped back at the exchange again for accusing it of being the reason for the $235 million hack in July. The Indian exchange is currently going through a restructuring in Singapore.
Liminal made its stance on October 22 through a blog post, calling WazirX’s blaming of Liminal for the breach a “disinformation campaign.” A stark revelation was offered when Liminal mentioned that WazirX continued to store about $175 million worth of crypto with the custody provider up to 75 days after the hack. That was even after the exchange continued to blame Liminal.
“In fact, despite their accusations, as of today, approximately USD 50 Million of their user assets continue to remain on wallets accessed via Liminal Infrastructure,” the blog mentioned. While the community may wonder why Liminal cannot release the assets to WazirX’s users who have not been able to withdraw the bulk of their funds, the blog read, “Liminal cannot transfer nor initiate any transaction pertaining to WazirX funds and only the WazirX team can initiate transactions on their wallets.”
WazirX’s Move Accused of Spreading Confusion
Liminal also criticized the Indian exchange’s decision to share about 240,000 wallet addresses with the court in Singapore for its restructuring process. The custody provider stated that it was a disinformation campaign designed to confuse users and the authorities. It also mentioned how the larger crypto community is going through “intense debate and concern” because of the confusion engendered by the 1,100-page list comprising the wallet addresses.
The custody provider issued its statement a day after Ashish Singhal, the CEO of CoinSwitch, another Indian crypto exchange platform, accused WazirX’s decision to share 240,000 wallet addresses at once as a move to confuse onlookers. CoinSwitch had funds left with WazirX in crypto and the Indian rupee, which the hacked exchange is not allowing it to withdraw.
Singhal’s X post also made another much bigger accusation. “By scanning through these wallets, we have observed a large chunk of Wazirx crypto has been moved to exchanges such as Bybit and Kucoin post the incident,” it mentioned. “As of now, we have identified the movement of $ 72.13 mn worth of crypto to Bybit and $ 1.5 mn funds to Kucoin.”
CoinSwitch is currently pursuing legal action to get the funds back.
