TonCoin loses 18% of its value on Telegram’s 11th anniversary and Durov’s arrest

TonCoin loses 18% of its value on Telegram’s 11th anniversary and Durov’s arrest

While Telegram Founder Pavel Durov awaits an appearance in court today in France, the crypto world and the defenders of Freedom of speech are speaking out loud about the infringement that is happening when it comes to Telegram, which celebrated its 11th anniversary this week.

The Russian government, once against Telegram is now defending Durov. Deputy Speaker of Russian State Duma Vladislav Davankov stated, ” Hardly anyone else has done more for the development of digital services in Russia and the world. We need to get him out of there. His arrest could be politically motivated and used to gain access to personal information on telegram users. We cannot allow this.”

Yet the TONCoin continues to face downward loss in value now reaching 18% decline. Last night it had lost 16% when Durov’s arrest was made public.

Ton Network and its associated Toncoin had been doing quite well. This year Toncoin had launched a $40 million fund, through its Open Network TON venutes, a new venture capital (VC) firm. The aim of which was to support early-stage crypto projects growing on the TON ecosystem. The new venture firm is founded by former senior members of the TON Foundation.

The launch comes amidst a growth of projects fuelled by the Toncoin Telegram partnership. The Toncoin price has also been on the rise. Analysts had noted that it was predicted a that Toncoin would potentially surge 2X in the coming weeks.

But today with Pavel Durov, under investigation for lack of moderators on Telegram allowing criminal activity to go untouched, He could face indictment today ( Sunday 25th), the Toncoin is under duress.

Durov faces possible indictment on Sunday, according to French media.

This all comes as Telegram celebrated its 11th birthday this week, adding new ways to support content creators with Star Reactions and Star Subscriptions, allowing admins to post as their profile or other channel in Super Channels and more.

The Ethereum co-founder responded to reports of Pavel Durov’s arrest, saying the outlook for freedom in Europe looked very bad “I’ve criticized Telegram before for not being serious with encryption. But (given the info available so far: the charge seems to be just being “unmoderated” and not giving up people’s data), this looks very bad and worrying for the future of software and comms freedom in Europe.”

Formerly in an interview in the Tucker Carlson show, Pavel Durov discussed how US agencies tried to gain a backdoor to Telegram. Followed by Israel’s request to censor them which Telegram refused. 

However, Telegram has on many occasions been considered as platform for spams, thefts, and other criminal activities. Russian based Kaspersky Digital Footprint Intelligence team analyzed shadow Telegram channels. Their findings reveal a troubling trend: cybercriminals are increasingly using Telegram as a platform for underground market activities. Cybercriminals actively operate channels and groups on Telegram dedicated to discussing fraud schemes, distributing leaked databases, and trading various criminal services, such as cashing out, forging documents, DDoS attacks as a service and more.

According to Kaspersky’s Digital Footprint Intelligence data, the volume of such posts surged by 53% in May-June 2024 compared to the same period last year. “The growing interest in Telegram from the cybercriminal community is driven by several key factors. Finding or creating a community on Telegram is relatively easy, which, combined with other factors, allows various channels, including cybercriminal ones, to gather an audience quickly,” explains Alexey Bannikov, analyst at Kaspersky Digital Footprint Intelligence.

The question remains what is the main reason for the arrest today, politics, war cabinets, or the fight against criminal activity?

Founder of Telegram gets arrested while TONcoin gets price hit

Founder of Telegram gets arrested while TONcoin gets price hit

The Founder of Telegram Pavel Durov has been arrested in France under charges executed under a French Warrant and has been detained by the National Anti Fraud Office on accusations that Telegram is facilitating crimes like terrorism, narcotics trafficking and fraud as well as other accusations, whilst TON Blockchain’s coin TON loses around 16% of its value.

Since his arrest, the TON network price has seen a dive with Ton Coin losing around 16% of its value reaching $5.7. The current CoinMarketCap ranking is #10, with a live market cap of $13,959,766,595 USD. It has a circulating supply of 2,527,167,308 TON coins and the max. supply is not available.

The relationship between Telegram and TON is not clear. In 2020, Telegram settled with the US regulator, agreeing to return the ICO proceeds and pay an $18.5 million penalty. Following the settlement, the TON Foundation emerged as a separate entity from both the Telegram Open Network and Telegram itself.

Although Toncoin is independent from Telegram, Telegram’s founder and CEO Pavel Durov posted on Telegram about the project in 2021. He gave his endorsement to Toncoin while maintaining that Telegram has no remaining links, financial or technological, to $TON.

TON announced that Tether tokens could also be issued on its blockchain, allowing Telegram users to send the stablecoin to each other within the app. In April 2024, Stablecoin operator Tether strengthened ties with Telegram’s Web3 ecosystem by launching its U.S. dollar-pegged USDT. Tether also noted it would launch the gold-pegged Tether Gold (XAUT) stablecoin on TON as well.

TON has been doing very well in terms of partnerships. In a strategic move, Animoca Brands became the largest validator for The Open Network (TON) blockchain, as announced by the TON Foundation. This collaboration signifies a promising effort to advance digital property rights within gaming and the open metaverse. Animoca Brands’ Mocaverse also in July 2024 announced a strategic partnership with MOCA Foundation and The Open Network (TON) Foundation to implement an identity and reputation-based consumer network across Moca Network and TON Blockchain ecosystems. 

In 2023 MEXC Ventures, a subsidiary of MEXC’s global cryptocurrency exchange MEXC, announced a significant investment in TON the largest layer-1 investment the firm has ever made. This investment worked alongside a strategic partnership with The Open Network (TON) Foundation.

Copper, one of the industry’s leading digital asset custodians, also integrated with The Open Network (TON), into its infrastructure.

So despite the fact that The Founder of Telegram was arrested, it seems that TON is taking the brunt of the hit, yet why given that both are different platforms with different utilities.

Outlier Ventures launches its Riyadh Base Camp program in KSA

Outlier Ventures launches its Riyadh Base Camp program in KSA

Outlier Ventures, a Web3 accelerator with over 300 portfolio projects in DeFi, AI, new Data economy, Blockchain, metaverse and more, has announced the launch of its Riyadh KSA Base Camp Program.

The Base Camp Program, will start in early September 2024 for a duration of 12 weeks. Investments will reach up to $100,000 to help startups who are accepted relocate to Saudi Arabia.

As per Outlier Ventures website, the Riyadh-based program will take the strongest founders across the region’s most promising technology verticals, giving them the resources they need to build industry-defining startups.

Outlier Ventures adds, that the Riyadh-based programme marks the beginning of a concerted focus on the MENA region. In accelerating the local deep-tech Web3 landscape. The accelerator is working with the best builders in sectors of local comparative advantage. These may include Gaming, Smart cities, AI, and Digital Identity.

Stephan Apel, CEO and Founding partner of Outlier Ventures stated, “The partnership with the NTDP (National Technology Development Program) marks an important milestone for the Outlier Venture’s presence globally and we are very much committed to the MENA region. Some of the best teams in our portfolio are based here and, through the accelerator program, I am excited to see the growth of many more.”

The National Technology Development Program of Saudi Arabia under the Ministry of Communications and Information Technology. The objective of the NTDP is to support the development of the technology ecosystem. Aside from supporting accelerators, the NTDP offers a number of direct support initiatives that founders may be able to access in the future after successfully graduating.

Ibrahim Neyaz, CEO of NTDP, “We are thrilled to partner with Outlier Ventures to achieve the goals of this partnership by working together to support the ecosystem of technology startups in Saudi Arabia. This partnership reinforces our commitment to advancing technology and fostering innovation in Saudi Arabia. By harnassing their extensive global expertise and advanced capabilities in the Web3 industry, Outlier Ventures will bring tangible value and make significant contributions to enhancing the Kingdom’s technological infrastructure.”

Salwa Radwi, Founder of NFT platform Nuqtah and the entrepreneur in residence at the Riyadh Base Camp program noted that Riyadh is the next big thing for startups, given the untapped potential in Riyadh’s startup scene, the opportunities for business ecosystem and the resources and support being offered to ambitious founders.

Myco joins Aptos Blockchain for decentralized streaming

Myco joins Aptos Blockchain for decentralized streaming

Founded in the UAE, Myco, a Web3 streaming platform has partnered with Aptos Foundation, which supports the growth of the Aptos Blockchain. Myco will be integrating its platform with the Aptos Blockchain to decentralize streaming.

The partnership will focus around technical integration, developing builder resources, and a mutual commitment to advancing Web3 technologies and delivering next-generation, decentralized digital streaming experiences.

The partnership is part of Myco’s broader plans to transition its infrastructure to the Aptos blockchain and support the Web3 streaming service provider’s long-term vision of becoming fully decentralized.

Hani El Khatib, co-founder and chief of Web3 at Myco stated, “Aptos’ advanced blockchain technology will support the launch of our sustainable and efficient token, enhancing our platform’s scalability and security while providing a superior user experience. This integration aligns seamlessly with our mission to lead the charge in making Web3-enabled streaming and entertainment accessible to the masses.”

Umair Masoom Co-Founder of Myco on LinkedIn stated, “This is a significant milestone in our journey as a company but more so a significant milestone for the entire hashtag Web3 industry!”

He explains what has ben achieved is a simpler, scalable, and friction less B2C product offering using Aptos Blockchain.

According to Masoom, Myco is now positioned to migrate our entire community, our brand promise and a real, revenue generating platform with millions of active users into an ecosystem that will enable our community & product to thrive.

Myco will be announcing soon its successful Series A raise that they will use to enter into the gaming sector after their success in video streaming.

In 2023, Republic Crypto signed an agreement with MyCo ( formerly MContent ), the UAE web3 streaming platform, to help build their web 3 strategy, making MyCo the first advisory project from the region.  MyCo is the first-of-its-kind vertically integrated streaming platform that empowers creators and users alike and offers a diverse content slate, including film, tv shows, influencer content, live sports, and UGC.

Digital assets platform, Zumo joins UAE sustainable Finance declaration

Digital assets platform, Zumo joins UAE sustainable Finance declaration

Zumo, a blockchain enabled digital asset as a service platform, aimed to offer sustainable finance to fintechs, banks, asset managers, has signed the Abu Dhabi Sustainable Finance declaration as it extends its reach further into the MENA region.

The Abu Dhabi Sustainable Finance Declaration is a voluntary membership-based initiative launched by Abu Dhabi Global Market (ADGM) in 2019 with support from the Ministry of Climate Change and Environment, the Central Bank of the UAE and the Securities and Commodities Authority.

It aims to establish a healthy sustainable finance industry in line with the UAE’s Green Economy for Sustainable Development initiative, which underpins the country’s ambition to become a successful model for the new green economy. The Declaration was signed by an initial group of 25 public and private sector entities.

Zumo will now collaborate with other participants to help create a framework for fostering and integrating green and sustainable investments, and provide expertise and insights gained from the company’s pioneering work in the sustainability sphere.

Zumo was a member of the World Economic Forum’s Crypto Sustainability Coalition, exploring how blockchain tools can be leveraged to contribute to meaningful progress towards climate action.

Building on this work, Zumo developed its Oxygen solution. The first of its kind, Oxygen uses blockchain technology and strategically sourced market instruments, including renewable energy certificates (RECs) and carbon removals, to enable financial institutions measure, mitigate, and report on the carbon footprint of their digital asset activities.

Nick Jones, Founder and CEO, Zumo, said, “The UAE is rapidly emerging as a significant crypto hub, thanks to the Emirati leadership’s proactive approach and the region’s welcoming regulatory environment. It is also working hard to become a hub for green technologies, which is something we’re very passionate about.”

He adds, “Sustainability now sits high on the world’s corporate agenda, and we’ve seen the regulator in Europe, ESMA, introduce ESG disclosures for crypto-asset providers and token issuers through its MiCA framework. As we expand into the UAE, we look forward to working with industry stakeholders to share our knowledge and help to drive a sustainable digital assets sector in the Middle East.”

Other signatories of the Abu Dhabi Sustainable Finance Declaration include the Central Bank of the UAE, the Abu Dhabi Securities Exchange, Deloitte and a number of the world’s leading banks, including First Abu Dhabi Bank, BNP Paribas, Citibank, HSBC, ING Bank, Macquarie and UniCredit.

World Blockchain summit returns to Dubai UAE

World Blockchain summit returns to Dubai UAE

The 30th edition of the World Blockchain Summit, organised by Trescon, is returning to Dubai to set the stage for innovation and thought leadership in the rapidly evolving world of blockchain and Web 3.0.

Hosted at Jumeirah Emirates Towers on 10-11th October 2024, the event will bring together over 2,000 blockchain pioneers, web3 innovators, visionaries, and investors to explore the future of decentralized technologies.

Celebrating the theme of how blockchain-based solutions are reshaping global economies, the summit will highlight both regional and global advancements in web3 technology. Attendees will engage with thought leaders and industry experts to examine the transformative impact of blockchain across various sectors, including finance, supply chain management, and digital identity.

The summit will feature a robust agenda, including high-profile keynote addresses, panel discussions, and interactive demonstrations. The key pillars of discussions at the summit include enterprise blockchain, tokenization of real-world assets, virtual assets & global laws, the DeFi frontier and more.

Amongst the notable speakers at the event are, Yat Siu, Co-Founder and Chairman, Animoca Brands, Haider Rafique, Global Chief Marketing Officer, OKX Nils Andersen Röed, Global Head of Law Enforcement Response and Deputy Head of Financial Crime Compliance, Binance, and Pankhuri Bansal, Blockchain & AI Expert, United Nations

Speaking on the future of blockchain and the impact of the event, Anil Kumar, Chief Operating Officer of Trescon, stated, “Blockchain has the potential to fundamentally transform industries by enhancing transparency, improving data security, and driving greater efficiency across various sectors.” He added, “The World Blockchain Summit is a vital platform for sparking meaningful dialogue among industry leaders and experts. It provides an opportunity to explore how blockchain intersects with digital marketing and other fields, uncovering its potential to reshape strategies and drive innovation.”

Additionally, the summit will host the regional finals of the Startup World Cup, organized by the US-based venture capital firm Pegasus Ventures. The winning startup will earn the coveted opportunity to pitch at the grand finale in San Francisco and win funding worth US$ 1 million.

Kaia DLT Foundation now licensed in ADGM

Kaia DLT Foundation now licensed in ADGM

Kaia DLT Foundation is now licensed in ADGM and their mainnet will be launched on August 29th 2024.

Kaia was formed through the merger of the Klaytn and Finschia blockchains initially developed by Kakao and LINE respectively. It aims to bring Web3 to the fingertips of hundreds of millions across Asia.

As per Kaia blog, “With the incorporation of Kaia DLT Foundation in ADGM, the final key dependency is now complete and we are excited to announce that the Kaia mainnet will be launching on 29 August 2024.”

Prior to the launch staking will be disabled on Finschia. It will then be followed by on-chain parameter changes for Klaytn and Finschia.

On 27 August, the Finschia Governance Members will offboard, deactivating their Finschia validator nodes to join the Kaia Governance Council. In their place, foundation-directed nodes will be activated.

Then, in preparation for the launch of the Kaia mainnet, the Finschia mainnet will undergo a final round of update. In the meantime, exchanges may suspend deposits and withdrawals for FNSA exchanges in preparation for the Kaia Mainnet launch. The timing of this suspension may vary by exchange, so please refer to each exchange’s policies.

Finally on August 29th the Kaia Portal will go live together with the launch of the Kaia mainnet. Kaia Portal is an official web service provided by the Kaia DLT Foundation and will serve as the gateway to the Kaia DeFi ecosystem.

Could the first Dirham stablecoin in UAE come from Tether

Could the first Dirham stablecoin in UAE come from Tether

Tether, a digital asset company that issues the stablecoin USDT ( Tether) has announced in the UAE its plans to add a new Dirham backed stablecoin.

According to the press release, the new stablecoin pegged to the United Arab Emirates Dirham (AED) is set to be launched in collaboration with UAE’s Phoenix Group, a Web3 investor and Bitcoin mining conglomerate.

Also onboard is Green Acorn Investments. The Tether dirham backed stablecoin will need to be licensed from the UAE Central Bank which recently came out with its Payment Token services regulation. The regulation notes that only dirham backed stablecoins can be used as legal tenders for the purchase of goods and services within the UAE. Tether’s USDT can only be used for the purchase of virtual assets.

The press release notes, that Tether’s latest upcoming stablecoin is a digital representation of the United Arab Emirates Dirham, with each token being fully backed by liquid UAE-based reserves. Adhering to Tether’s transparent and robust reserve standards, it ensures that every Dirham-pegged token is tied to the value of the AED, providing stability and confidence in its value. 

Tether’s Dirham-pegged stablecoin is aiming to provide users with a seamless and cost-effective means of accessing the benefits of the AED while leveraging the transparency and efficiency of blockchain technology. This digital asset will streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations, thus playing a crucial role in the financial ecosystem of the UAE and beyond.

“We’re pleased to announce this initiative to develop Tether’s Dirham-pegged stablecoin, adding to our range of stablecoin options,” said Paolo Ardoino, CEO of Tether. “The United Arab Emirates is becoming a significant global economic hub, and we believe our users will find our Dirham-pegged token to be a valuable and versatile addition. Tether’s Dirham-pegged stablecoin is set to become an essential tool for businesses and individuals looking for a secure and efficient means of transacting in the United Arab Emirates Dirham whether for cross-border payments, trading, or simply diversifying one’s digital assets.”

The global market for stablecoins is currently valued at $150 billion, with USDt alone having a market cap of more than $115 billion, and projections see this industry’s potential growth to $2.8 trillion by 2028.

“We are thrilled to be working with Tether on bringing a UAE Dirham-pegged stablecoin to the market and are confident of its potential in transforming the digital economy for users across the region and beyond,” commented Seyedmohammad Alizadehfard, Co-Founder and Group CEO of Phoenix Group. “This collaboration with Tether not only underscores our commitment to innovation and excellence but also reflects our dedication to providing financial solutions that meet the needs of our customers. Abu Dhabi’s progressive stance towards blockchain, digital assets and innovation makes it the perfect launchpad”.

Phoenix Group claims to be the 5th largest Bitcoin mining company in the world and mines 3 percent of world’s bitcoin. While Pheonix Group profits went up 141 percent in the second half of 2024 reaching $56 million, revenues decreased by 35%. In an interview with CNBC Arabiya, the CFO of Pheonix explained that this was due to Bitcoin halving, and the decrease in sales of mining equipment, while profits were due to investments in crypto projects and tokens as well as trading.

In a press conference, Munaf Ali, co-founder and managing director, Phoenix Group, said they are working very closely with the regulator and all stakeholders to get it as soon as possible. He said the group is set to launch the Dirham stablecoin in January 2025.

This annoucement comes one day after ADGM released a consultation paper for Fiat referenced tokens. As per the announcement, FRTs are a category of stablecoins that are backed by high-quality, liquid assets denominated in the same currency as the FRT and that can be liquidated rapidly with minimal adverse price effect. FRTs are intended to be used as a means of payment and share certain characteristics with Stored Value.

Africa’s stablecoin on and off ramp platform Yellow Card to utilize Fireblocks for cross border transactions

Africa’s stablecoin on and off ramp platform Yellow Card to utilize Fireblocks for cross border transactions

Yellow Card, Africa’s stablecoin on/off ramp, has integrated with digital asset infrastructure provider Fireblocks to improve cross-border transactions for both businesses and individuals.

By utilizing Fireblocks, Yellow Card seeks to remove obstacles for global corporate treasury, in accessing African markets, by offering secure and effective on-chain solutions. This includes leveraging Fireblocks’ Wallets-as-a-Service (WaaS) which enables Yellow Card to create, manage, and secure up to 14 million multi-party computation (MPC) wallets at scale and safeguard customer assets.

“We’re excited to work with Fireblocks to enable real-world use cases for stablecoins, solving the complex challenges of international and pan-African transactions,” said Chris Maurice, CEO and co-founder of Yellow Card. “Together, we enhance how businesses around the world manage their treasury, make payments, and drive innovation across Africa.”

Fireblocks is an easy-to-use platform to create new blockchain-based products and manage day-to-day digital asset operations, having secured the transfer of over $6 trillion in digital assets. Both entities seek to tackle the complex challenges faced by multinational corporate treasuries such as regulatory compliance, currency volatility, and inefficient legacy banking systems.

“Much like the rest of the world, Africa has seen a transformative shift from traditional payment methods to alternative payments, driven by new technologies, with $100 billion worth of remittances flowing into the continent. However, cross-border payments are still encumbered by high costs, with low-value cross-border payments incurring steep fees,” said Ran Goldi, SVP Payments and Network at Fireblocks. “We are delighted to be working with Yellow Card to provide our direct custody wallets-as-a-service (WaaS), allowing them to secure their customers’ digital assets at scale.”

Yellow Card, with a presence in 20 African countries, is at the forefront of assisting organizations in handling foreign exchange (FX) risk through stablecoin transactions. By utilizing USDT, USDC, and PYUSD, the company helps businesses manage their treasury and related transactions within and beyond the continent.

This marks a pivotal moment for both companies as they pave the way for more streamlined and secure financial operations across Africa. With a shared vision of innovation and excellence, Yellow Card and Fireblocks have a common goal of transforming cross-border transactions by introducing new benefits to businesses and the economy through innovation and excellence.

Liminal Custody on WazirX attack, they were using our self custodial wallets

Liminal Custody on WazirX attack, they were using our self custodial wallets

Weeks after WazirX, a cryptocurrency exchange was targeted by a cyber attack resulting in the theft of digital assets exceeding $230 million from one of their Multisig wallets, Mandiant Solutions, a cyber security firm and a Google subsidiary gave WazirX a clean chit.

As part of Mandiant Solutions’ investigation, one of their tasks was to determine if any of the three laptops used by WazirX team member for performing transactions had been compromised.

In its report published on August 14th, Mandiant stated, “We did not identify evidence of compromise on the three laptops that were used for signing transactions.”

Wazirx noted in its post dated August 19th , “While a detailed report is forthcoming, the findings largely indicate that the issue leading to the cyberattack originated from Liminal. The wallet that was attacked was managed using Liminal’s digital asset custody and wallet infrastructure.”

A spokesperson for WazirX said, “We have full faith in the investigating agency and shall cooperate with them to the fullest extent. We are actively working on recovering the stolen funds and are hopeful that those responsible will be brought to justice.”

Liminal custody explains stance

Given that Liminal Custody is a regulated crypto custodian in the UAE having acquired the Financial Services Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) and is currently seeking a license from Dubai through VARA, Lara on the Block asked Liminal for their feedback on the WazirX incident.

Liminal Custody statement (provided via email) stated, “It is pertinent to note that the client in question is using our self-custody wallet infrastructure software and not any custody service, regulated or otherwise. It is also important to understand that this incident occurred in India and is unrelated to the UAE, managed custody, regulated custody, or ADGM.”

Liminal Custody goes on to note, “In the self-custodial wallet service, they are the custodians of the assets as they have complete access to all the wallets and funds at all times. Furthermore, they are the sole initiators of all transactions on their wallets and also have recovery kits and backup kits to gain complete access to their wallets in the event that Liminal were to not exist for any reason. This is a standard and default feature of all self-custodial wallet infrastructure products.”

Liminal has also just provided Lara on the Block with an updated statement on WazirX post on August 19. Liminal Custody states, “We cannot comment on the statement put out by WazirX, due to the lack of any information on the scope and methodology of the audit they have conducted. Having said that, if one were to go by the information they’ve shared, this actually raises serious questions on the security of their network infrastructure, operational custody controls and overall security posture, given that they were the custodians for 5 of the 6 keys.”

Liminal adds, “As far as our front-end and UI is concerned, our preliminary audit reports categorically indicate no breach in our front-end or UI. Please note that we have empaneled more than one reputed independent auditors to conduct forensic analysis and our detailed reports are expected to arrive within this week. We are confident that the Liminal front-end and UI were not compromised and the report and findings will be shared as soon as they are made available to us. It is unfortunate that this is being made out into a Liminal vs WazirX social media battle while so many users continue to suffer. In the interest of absolute transparency at our end, we have empaneled more than one reputed auditor and are open to empaneling additional auditors, including the likes of Mandiant to conduct the UI audit as well.”

Liminal Custody in MENA

With regards to their operations in the MENA, Liminal Custody states, “ In the MENA region, we provide regulated custody services where Liminal holds all the private keys and leverages its expertise to provide robust security and compliance with international security certifications, including CCSS Level-3 QSP, ISO 27001 & 27701, and others, which underscore our unwavering commitment to security.”

Finally in their statement to Lara on the Block Liminal Custody states, “ We unequivocally state that Liminal’s platform, infrastructure, wallets, and assets remain completely secure and both our platforms continue to process transactions and withdrawals seamlessly.”

Liminal Custody is doing its own investigation

In July 2024, Liminal published a statement staring that the recent security breach suffered by WazirX, underscores the urgent need for robust security measures and investor protection across the industry. This wallet, independently created and subsequently imported onto the Liminal platform, was compromised on July 18. Our preliminary investigation points to a customer level compromise via a sophisticated intrusion. They had stated that Liminal’s platform, infrastructure, wallets, and assets remain completely secure.

Liminal had announced its engagement of independent CERT-certified, third-party experts to conduct thorough forensic audits which will be backed by published reports while engaging with relevant authorities.

However soon after this statement WazirX accused Liminal Custody of failing to secure the multisig wallet, and WazirX ended its Custody Relationship With Liminal moving funds To New Multisig Wallets.

The blaming game is not important getting back users money is

Whoever is to blame, on X, Top Asian Crypto influencer, WISE ADVICE expresses what’s on the mind of everyone. He notes, “It’s been more than a month since WazirX got hacked, Still, nobody is taking responsibility for the hack. Earlier, Liminal blamed WazirX for this hack. Now WazirX is blaming Liminal for this hack. But that’s not the main question; the main question is when users are going to get their money back.”