- Liminal Custody has taken a jab at WazirX.
- The crypto custodian accused WazirX of engaging in a disinformation campaign.
- WazirX also faced accusations of transferring millions in users’ cryptos after its alleged hack.
Liminal Custody took a jab at WazirX, accusing the hacked crypto exchange of engaging in an “ongoing disinformation campaign” that threatens the digital asset industry’s integrity and the trust of its stakeholders.
Liminal’s move to set the record straight came a few days after WazirX submitted an affidavit containing information on 240,000 wallet addresses as part of its debt restructuring process in the High Court of Singapore. The submission drew scrutiny from industry observers and Liminal, which claimed it was “exhaustive” and misrepresented its role in the matter.
Liminal’s Side of the Story
In a press release on October 22, Liminal said the industry has widely criticized WazirX’s extensive court submission spanning 1,100 odd pages as a potential disinformation campaign to confuse users and legal authorities.
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Clarifying its role, Liminal asserted that only a handful of the 240,000 wallet addresses shared by WazirX are warm/cold wallets managed through infrastructure and held about $300 million for several days and $177 million for several months after the exchange was hacked on July 18.
“WazirX was not using several Liminal infrastructure offerings including, hot wallets, which would have created thousands of wallets within Liminal’s infrastructure and smart refill transactions feature, which could have prevented usage of cold wallets for refill and eventually the cold wallet signatures from getting leaked,” the statement read.
According to the statement, despite WazirX’s previous claim that it had terminated its contract with Liminal, the exchange held approximately $50 million of its user assets in wallets accessible via the crypto custodian’s infrastructure as of October 22.
Liminal’s statement followed concerns by CoinSwitch co-founder Ashish Singhal that WazirX had transferred over $72 million in users’ crypto assets to centralized exchanges like Bybit and KuCoin following the reported security breach in July.
Liminal clarified that only the WazirX team could initiate transactions on its self-custody wallets.
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