Liminal, the digital custody partner of WazirX, released a statement refuting data breach allegations and clarifying its role in the incident.

Liminal's Position: Dispelling Myths

On October 22, Liminal released a statement responding to what it called a “disinformation campaign” by WazirX. The company stated that, despite the accusations, approximately $50 million of user assets continue to remain on wallets managed via Liminal Infrastructure. Liminal highlighted that it cannot initiate transactions involving WazirX's funds, stating that only the WazirX team can execute such operations.

WazirX's Data Disclosure

Liminal also mentioned WazirX's decision to disclose information on 240,000 wallet addresses as part of the debt restructuring process in Singapore. Announcing the news on October 17, WazirX stated that the disclosure was not just a court requirement but also the exchange's commitment to transparency. Liminal noted that this data disclosure has sparked debate within the crypto ecosystem, describing it as a potential disinformation campaign.

Allegations of Unlawful Transfers

Liminal’s statement came shortly after CoinSwitch co-founder Ashish Singhal accused WazirX of transferring more than $70 million in users' crypto to global exchanges Bybit and KuCoin following the security incident in July. "We have observed a large chunk of WazirX crypto has been moved to exchanges such as Bybit and KuCoin post the incident. As of now, we have identified the movement of $72.12 million worth of crypto to Bybit and $1.5 million to KuCoin," Singhal wrote.

Liminal maintains its stance on its innocence regarding the data breach and underscores the importance of transparency and accountability in managing clients' crypto assets.