A row has emerged between India’s largest cryptocurrency exchange, WazirX, and its digital custody partner Liminal after a $235 million security breach in July.
Over time, however, Liminal has fiercely denied that WazirX is accountable for the cyberattack pointing to the events in the situation as revealing the ongoing nature of the breach.
Liminal Still Provides Service to Wazirx
While WazirX accused Liminal of the security breach, WazirX has remained to store millions worth of assets with the custodian. Liminal, in their statement on October 22, informed that after 75 days of the breach, WazirX had over $175 million in assets still on Liminal’s platform. Based on the update, about $ 50 million was left in Liminal-linked wallets at the time of writing.
Liminal’s Defence and Accusations of Disinformation
Liminal labeled WazirX’s accusations as part of a “disinformation campaign”, and explained that it cannot unilaterously trigger transactions in the context of WazirX’s funds. The implication is that no one but the team at WazirX has the ability to make the transfers happen.
Liminal also pointed to 240,000 wallet addresses submitted by WazirX to a court during the debt restructuring exercise, which it says has been used to manipulate users.
Making the situation worse, the authorities of WazirX have been blamed for transferring $72 million in stolen crypt currencies to other exchanges, Bybit and KuCoin. Though, WazirX CEO Nischal Shetty said that all these moves were genuine and a part of the process leading to change in a new custodian, many people have questioned the level of transparency.
While both parties still try to argue the facts, the nature of the WazirX security breach is still unclear. As millions remain unidentified or uncatered for, and users are left in limbo, this case demonstrates the relevance of trust and security within the novel and quickly growing crypto environment.
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