Catenaa, Sunday, November 24, 2024- Delhi Police’s Special Cell has arrested on Monday, November 18, SK Masud Alam, a resident of West Bengal, in connection with the July cyberattack on Indian cryptocurrency exchange WazirX, which resulted in the theft of digital assets worth Rs 2,000 crore ($230 million).
Alam allegedly created a fake account under the alias Souvik Mondal and sold it via Telegram to a co-conspirator who executed the breach.
The investigation, led by the police’s Intelligence Fusion and Strategic Operations (IFSO) division, revealed that hackers drained WazirX’s hot wallet and attempted to access the cold wallet, which is more secure.
WazirX has cooperated with authorities, providing KYC records and transaction logs. However, the firm responsible for securing WazirX’s wallets, Liminal Custody, has been accused of non-cooperation, failing to provide critical information despite repeated notices.
Seized laptops and multi-signature wallet records are under scrutiny as police work to trace the stolen funds. The breach impacted nearly 45% of WazirX’s holdings. Further investigations into Liminal Custody’s role are expected in a supplementary chargesheet.
This arrest is a significant breakthrough in one of India’s largest crypto-related cybercrime cases. The incident has raised concerns over the accountability of custodial firms and the vulnerability of cryptocurrency exchanges to sophisticated cyberattacks.
