Liminal, the digital custody partner of WazirX, has responded to the accusations surrounding a $235 million security breach that occurred in July. In a statement dated October 22, Liminal dismissed WazirX's claims of fault and pointed out that, despite the breach, WazirX continued to use its services and retained over $175 million of assets on Liminal’s platform 75 days post-incident. Liminal clarified that it cannot execute transactions involving WazirX’s funds, which can only be initiated by WazirX’s team. Furthermore, Liminal raised concerns over WazirX’s disclosure of 240,000 wallet addresses during its debt restructuring process, suggesting such actions could confuse users and regulatory bodies. The statement follows allegations from Ashish Singhal, co-founder of CoinSwitch, that WazirX transferred significant amounts of user crypto to other exchanges after the breach. Liminal’s response aims to set the record straight amid ongoing discussions about the security incident and WazirX’s handling of user assets.

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