The Liminal Custody team shared interesting details regarding the struggling Singapore-based popular Indian crypto exchange, WazirX.
In July 2024, WazirX’s cold wallet was hacked by an unknown hacker. The WazirX team blamed the crypto custody service provider Liminal Custody. However, a dedicated audit found no fault linked to Liminal Custody.
On 22 Oct 2024, the Liminal team published detailed information regarding its dispute with WazirX after the hacking incident.
In light of ongoing discussions regarding the 240,000 wallet addresses, we have been approached to clarify our role in this matter.🧵Here's a detailed account of our stance and the facts surrounding this update. 🔗https://t.co/8zL4fhlw7I1/6
— Liminal Custody🚀 (@liminalcustody) October 22, 2024
They stated that, while WazirX leadership publicly claimed they had distanced themselves from Liminal Custody services, in reality, they were still using these services. Specifically, WazirX maintained over $175 million in assets on its platform for 75 days after the security breach and currently holds $50 million worth of cryptocurrencies.
Liminal also criticised WazirX’s decision to disclose information on 240,000 wallet addresses as part of a debt restructuring process in Singapore. WazirX announced on October 17 that this disclosure was required by the court, emphasising its commitment to transparency. The Liminal team suggested that the extensive 1,100-page submission could be part of a disinformation campaign aimed at misleading WazirX customers and authorities.
WazirX customer fund dashboard controversy
Many people noted that WazirX leadership shared a large list of crypto addresses to mislead customers, but WazirX’s CEO said his team has been working to create a proof of reserve (PoR) dashboard to show the safe funds on these addresses holding large amount of cryptocurrencies.
POR work is ongoing. Team is aiming to complete it asap so we can share it with everyone.There have been false claims circulating that funds were moved to exchanges to trade!Funds were moved to some exchanges because we are still in the process of onboarding a custodian. This…
— Nischal (Shardeum) 🔼 (@NischalShetty) October 22, 2024
Critics, however, pointed out that some people independently created a dedicated dashboard to show the on-chain WazirX customer funds within just 5-6 hours, raising questions about why the WazirX team is taking so much time.
Another Manipulation by Wazirx pic.twitter.com/SeMk0Dzot6
— Aditya Singh (@CryptooAdy) October 22, 2024
Read also: Nischal Shetty responds to the allegations of secret $72M customer fund transaction to Chinese crypto platform
