Radiant Capital

WazirX

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 <a data-ct-non-breakable="null" href="https://www.liminalcustody.com/blog/wazirx-incident-update-response-to-ongoing-disinformation-campaign/" rel="null" target="null" text="null" title="null">released</a> an update responding to what it called a “disinformation campaign” by WazirX and offered some information about its role in the matter.
The statement claimed that <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/wazir-x-finds-no-evidence-compromised-devices-preliminary-investigation" rel="" target="_self" text="null" title="https://cointelegraph.com/news/wazir-x-finds-no-evidence-compromised-devices-preliminary-investigation">despite accusing Liminal</a> of causing the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/indian-crypto-exchange-wazirx-hack-235m" rel="null" target="null" text="null" title="null">$235 million breach</a> in July, WazirX continues using its digital custody services, keeping millions of its assets on Liminal.
<h2 id="wazirx-held-175-million-with-liminal-75-days-after-the-hack">WazirX held $175 million with Liminal 75 days after the hack</h2>
In its statement, Liminal said that WazirX kept more than $175 million in assets on its platform 75 days after the security incident. It added:
<blockquote>
 “Despite their accusations, as of today, approximately $50 million of their user assets continue to remain on wallets accessed via Liminal Infrastructure.”
</blockquote>
Cointelegraph asked WazirX about Liminal’s claims but had not received a response by publication.
Liminal emphasized that it cannot initiate transactions involving WazirX’s funds, that only the WazirX team can execute such transactions. 
<h2 id="liminal-mentions-wazirx-s-submission-of-240-000-wallet-addresses-to-the-court">Liminal mentions WazirX’s submission of 240,000 wallet addresses to the court</h2>
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 <a data-ct-non-breakable="null" href="https://wazirx.com/blog/disclosure-of-240000-wallet-addresses-pursuant-to-debt-restructuring-process/" rel="null" target="null" text="null" title="null">said</a> 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.”
Liminal said the data disclosure has been widely criticized as a potential disinformation campaign to confuse users and legal authorities.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/radiant-capital-attacker-compromised-multiple-developers-devices-post-mortem" rel="null" target="null" text="null" title="null">Radiant Capital hacker compromised developers’ devices — post-mortem</a>
“The exchange’s exhaustive submission spanning 1,100 odd pages has sparked intense debate and concern within the cryptocurrency ecosystem,” Liminal said.
<figure>
 <img alt="India, Transparency, Hacks, WazirX" src="https://s3.cointelegraph.com/uploads/2024-10/0192b440-db69-7358-9500-d22551d486e9" title="">
 <figcaption style="text-align: center;">
 An excerpt from Ashish Singhal’s post on WazirX. Source: <a data-ct-non-breakable="null" href="https://x.com/ashish343/status/1848212794409394639" rel="null" target="null" text="null" title="https://x.com/ashish343/status/1848212794409394639">Ashish Singhal</a>
 </figcaption>
</figure>
Liminal’s statement came shortly after CoinSwitch co-founder Ashish Singhal said WazirX transferred more than $70 million in users’ crypto to global exchanges Bybit and KuCoin after 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. We have now identified the movement of $72.12 million worth of crypto to Bybit and $1.5 million funds to KuCoin,” Singhal wrote on X.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-price-prediction-sec-x-account-etf-hack-trump-crypto-hodlers-digest/" rel="null" target="null" text="null" title="null">Bitcoin $233K forecast, SEC X account hacker arrested, and more: Hodler’s Digest, Oct. 13 – 19</a>

Liminal challenges WazirX accusations after $235M security breach

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