Indian Police Arrest Suspect in Connection with WazirX’s $234M Hack

Indian police recently arrested an individual allegedly linked to the July cyber attack on crypto exchange WazirX, which caused around $234m in losses.

SK Masud Alam, from West Bengal, allegedly created a fake account to carry out the cyberattack, according to a police chargesheet seen by Cryptonews. Authorities consider his arrest as a major headway in the ongoing investigation, aiding in unraveling the complex transactions.

Suspect Charged with Creating Fake WazirX Account Used for Hacking

According to the chargesheet, Alam created a WazirX account under the alias Souvik Mondal. He then sold it via Telegram to M Hasan, who allegedly used it to hack the exchange.

A WazirX spokesperson declined to comment, stating that the matter is subjudice.

The chargesheet notes that Liminal Custody, responsible for securing WazirX’s digital assets, was uncooperative during the investigation. Previously, Liminal claimed its initial audit reports confirmed no breach in its front-end or user interface. After the hack, WazirX temporarily halted withdrawals on its platform.

During the investigation, the police reportedly sought crucial information from Liminal Custody. However, despite multiple notices, Liminal failed to provide the required details, raising doubts about their accountability, the report stated.

The chargesheet states that Liminal’s role will be further examined in an upcoming supplementary document as the case progresses.

Investigators Seize Laptops from WazirX Amid Multi-Signature Wallet Abuse Concerns

Investigators acted against the potential abuse of multi-signature wallets by seizing three laptops from WazirX, used by authorized signatories for transaction approvals. The chargesheet reveals that WazirX fully cooperated, providing essential data such as KYC information and transaction records.

With support from the Indian Cyber Crime Coordination Centre (IFSO), the investigation confirmed that there was no unauthorized access to WazirX’s systems, either internally or externally.

Liminal didn’t return Cryptonews’ request for comment by press time.