Nikolas Sargeant
Indian authorities have made a breakthrough in the $234M WazirX cryptocurrency exchange hack case with the arrest of SK Masud Alam from West Bengal. The July cyberattack, which ranks among the largest crypto security breaches of the year, has been under intense investigation by Delhi Police.
Fake Account Scheme Unraveled in Major Cryptocurrency Heist
Investigators revealed that Alam created a WazirX trading account using the fictitious identity "Souvik Mondal" before selling it through Telegram to M Hasan, the alleged perpetrator of the hack. The case has highlighted significant security vulnerabilities in crypto exchange operations.
The investigation faced challenges when Liminal Custody, WazirX's digital asset security provider, reportedly failed to cooperate fully with authorities. Despite Liminal's earlier claims that their initial audit showed no security breaches in their front-end systems, police documents indicate the company was unresponsive to multiple information requests.
Exchange Security Protocols Under Scrutiny as Investigation Deepens
Law enforcement officials have seized three laptops from WazirX used for multi-signature wallet approvals, addressing concerns about potential security protocol abuse. The exchange has demonstrated full cooperation with investigators, providing comprehensive KYC data and transaction records.
Working alongside the Indian Cyber Crime Coordination Centre (IFSO), investigators have confirmed no unauthorized system access occurred, either from internal or external sources. The investigation continues with authorities preparing a supplementary document to examine Liminal's role in greater detail.
The case remains active as investigators work to track the movement of stolen funds and identify additional suspects potentially involved in the breach.
