Delhi Police have made a significant arrest in connection with the ₹2,000 crore hack of cryptocurrency exchange WazirX, apprehending SK Masud Alam from West Bengal. Alam is accused of orchestrating the cyberattack, which targeted WazirX’s hot wallet and attempted to breach its cold wallet, marking one of the largest security breaches in the cryptocurrency sector.
The attack has raised alarms over the security vulnerabilities of digital asset exchanges and prompted widespread concern. Alam, a resident of East Midnapore in West Bengal, was arrested by Delhi Police’s Special Cell following an investigation by the Intelligence Fusion and Strategic Operations (IFSO) division.
According to the chargesheet, Alam created a fake WazirX account under the alias Souvik Mondal, which he later sold through Telegram to a person named M Hasan. This account was reportedly used to carry out the cyberattack. Investigators believe Alam may be part of a broader network of cybercriminals, and efforts are underway to uncover additional individuals involved in the crime.
The investigation has also revealed troubling non-cooperation from Liminal Custody, a digital asset custody firm tasked with securing WazirX’s wallets. Despite multiple notices from the Delhi Police, Liminal Custody allegedly failed to provide crucial information needed to aid the investigation, raising serious questions about its security practices. The authorities have stated that Liminal’s involvement will be addressed in a supplementary chargesheet.
Further complications arose when three laptops, used by WazirX’s authorized signatories for approving transactions via multi-signature wallets, were seized by the Delhi Police. However, WazirX has been fully cooperative with the investigation, providing essential data such as KYC details and transaction logs to assist in tracking the stolen assets.
While there is no evidence of unauthorized access to WazirX’s systems, either locally or remotely, investigators believe the breach may have been facilitated by compromised accounts, suggesting an inside job.
As the investigation continues, the lack of cooperation from Liminal Custody remains a critical issue, potentially hindering efforts to trace the full scope of the cyberattack. Authorities are focused on identifying other individuals involved and piecing together the full details of the attack.
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