Liminal, the digital custody partner of embattled cryptocurrency exchange, WazirX has explained its involvement in the $235 million breach. The firm, through a statement on Tuesday, revealed how the management of the exchange has spread fake information about the hack and the involvement of Liminal.Â
More so, Liminal claimed that WazirX still entrusts some of its assets to the custodian despite how the India-based crypto exchange blamed the firm for causing the breach. According to Liminal, the exchange still has more than $175 million in its care 75 days after the hack.
At the moment, the firm disclosed that it still held about $50 million of user deposits on the exchange. Consequently, Liminal urged WazirX and its management to desist from the disinformation campaign.
Recall that WazirX allegedly stated that the shortcomings of its custodian partner gave room for the attackers. Meanwhile, Liminal claims that despite the breach, WazirX still trusts the firm with customers’ funds which refutes the questions on the reliability of the custodian.
Growing Questions on the Transparency of the Restructuring Process
While restructuring efforts are ongoing to refund affected users, WazirX has found itself amid numerous controversies. Shortly after the attack, renowned cryptocurrency exchange Binance disassociated itself from the exchange.
As per a Binbits report, Binance explained that it doesn’t interfere with the control or management of the Indian-based cryptocurrency exchange. On the flip side, the management of WazirX alleged that Binance took charge of the exchange after completing a takeover deal a few years back.
Recently, Binance empathized that the takeover deal didn’t manifest and it only provided third-party wallet services for the exchange. Hence, the issue and the recent developments surrounding the hack have further raised questions about the transparency and reliability of the exchange.
At the moment, WazirX is under heavy criticism after the exchange submitted more than 240,000 addresses to a court in Singapore as part of its restructuring process. WazirX, while announcing the development, claimed to submit the addresses as part of its commitment to transparency.
However, Liminal mentioned that the disclosure is widely regarded as an attempt by WazirX to confuse users and authorities. The custodian said that the exhaustive submission of about 1,100 pages containing users’ wallet addresses has triggered debate across the cryptocurrency landscape.
Also, the co-founder of CoinSwitch, Ashish Singhal said WazirX moved above $70 million worth of users’ digital assets to popular exchanges like Bybit and KuCoin.