Liminal’s failure to cooperate with the charge sheet has resulted in criticism, as WazirX has described its recovery strategy for creditors.
The Delhi Police have made strides in their investigation of the $235 million violation of the crypto exchange WazirX by apprehending SK Masud Alam from Bengal.
IndiaToday, a local media agency, reported on November 13 that Alam allegedly established a false account on WazirX under a false name “Souvik Mondal.” According to reports, he sold this account to an individual named M. Hasan via Telegram, who subsequently employed it to execute the exploit.
In order to investigate the potential misuse of multisig wallets, authorities have confiscated three laptops that belonged to WazirX’s authorized signatories.
The charge document indicates that WazirX has been entirely cooperative in its provision of comprehensive KYC data and transaction records. Nevertheless, the Indian Cyber Crime Coordination Centre (IFSO) conducted an inspection that revealed no indications of illicit access to WazirX’s internal systems.
In contrast, authorities have reported encountering challenges in collaborating with Liminal, the digital asset custody provider that was initially responsible for safeguarding WazirX’s purses.
Despite numerous requests, the police assert that Liminal failed to provide pertinent information, which impeded their ability to completely investigate the breach. Consequently, the investigation will continue to emphasize Liminal’s purported lack of cooperation in a supplementary charge sheet.
Liminal and WazirX had previously exchanged accusations regarding the breach. The asset custodian criticized WazirX’s management practices, while the exchange claimed that Liminal did not adhere to security standards.
This development occurs approximately one week after the exchange presented strategies to optimize fund recovery for its creditors.
The initial stage entails the reinstatement of the trading platform in order to generate revenue that benefits creditors and restore trading volumes. WazirX intends to distribute fees collected during this period to creditors, thereby establishing a direct route to financial recovery.
WazirX’s second initiative would involve the introduction of new services, such as a decentralized exchange (DEX), staking, an over-the-counter (OTC) platform, and futures trading, in order to diversify its revenue streams.
The purpose of these services is to attract users to the platform, and the revenue generated is intended to ensure the platform’s financial stability.
In the interim, WazirX has also pledged to recoup lost and illiquid assets through legal channels. The exchange’s objective is to reclaim these assets in order to protect them for its creditors. The organization declared:
“This process involves the monitoring of these assets and the prevention of unauthorized withdrawals in order to optimize the potential returns for Creditors.”
The final component of WazirX’s recovery strategy is the investigation of “White Knight” partnerships, in which potential investors could provide rescue financing. Supporting WazirX’s endeavors to stabilize operations and recompense creditors, this strategy would incorporate new funds into the recovery process.
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