Last week, Delhi Police’s Special Cell arrested SK Masud Alam, a resident of West Bengal, for his alleged involvement in the massive cyberattack on cryptocurrency exchange WazirX, which caused losses amounting to ₹2,000 crore. Alam is accused of creating a fraudulent account used in the attack, a key link in the case. The arrest marks a significant breakthrough in the investigation, as authorities probe deeper into the masterminds behind one of the largest digital heists in India’s history.
Authorities have made a crucial breakthrough in the WazirX cyberattack investigation with the arrest of Alam in the East Midnapore district, West Bengal. This milestone marks significant progress in unraveling the intricate crypto transactions that facilitated the attack.
In a major development, Alam’s arrest in East Midnapore district, West Bengal, has provided a crucial turning point in the investigation into the WazirX cyberattack. This breakthrough is expected to shed light on the intricate crypto transactions that enabled the attack, bringing authorities closer to unraveling the case’s complexities.
According to a chargesheet filed by the Delhi Police, obtained by The Crypto Times, SK Masud Alam allegedly created a fake account under the pseudonym Souvik Mondal. He then sold this account to a person named M Hasan via Telegram, who subsequently utilized it to execute the devastating breach on the WazirX cryptocurrency exchange, perpetrating the massive cyber heist.
Delhi Police’s IFSO division uncovered a sophisticated cyber heist in the WazirX investigation. Hackers drained the exchange’s hot wallet and attempted to breach its cold wallet, which is secured offline with robust measures.
The investigation faced a hurdle due to Liminal Custody’s alleged non-cooperation. As WazirX’s wallet security provider, Liminal Custody withheld crucial information, hindering the probe.
The investigation into the ₹2,000 crore WazirX theft hit a snag due to Liminal Custody’s non-cooperation, despite multiple notices. The security firm’s failure to provide vital information obstructed efforts to track the stolen crypto assets, raising concerns about its protocols and accountability. Notably, the probe found no evidence of unauthorized access to WazirX’s systems, and the exchange itself has fully cooperated, furnishing KYC details and transaction logs to aid the investigation.
As part of the ongoing investigation, authorities confiscated laptops from WazirX to scrutinize the suspected misuse of multi-signature wallets. Furthermore, the charge sheet reveals that Liminal Custody’s involvement in the hack will be subjected to additional inquiry, with findings to be presented in a supplementary chargesheet, signaling a continued probe into the security firm’s role.
In a devastating cyberattack in July, WazirX, a prominent Indian cryptocurrency exchange, lost over $230 million (₹2,000 crore) in digital assets. The breach exploited a vulnerability in the exchange’s multi-signature wallet, resulting in the theft of approximately 45% of WazirX’s total holdings, causing significant financial damage.
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