WazirX Hacker Found: Delhi Police Arrest Suspect Behind $230 Million Cyber Theft
Elena R14 Nov 20241 min read
Indian cryptocurrency exchange WazirX faces a fresh challenge as the Delhi Police arrest SK Masud Alam from West Bengal, linking him to a major hack reported by India Today. The cyber theft, which took place in July, involved virtual assets valued at approximately Rs 2,000 crore ($230 million)—nearly 45% of the exchange’s total holdings.
Alam is accused of executing the hack by exploiting a WazirX account under the alias “Souvik Mondal.” According to investigators, this account was allegedly used to sell stolen funds to another user, M. Hasan, via Telegram. Hasan, in turn, reportedly leveraged the account for further illicit activities on the platform.
It’s blow after blow for WazirX. What’s next? Read on.
Understanding the Attack
The attack compromised both WazirX’s hot wallet (used for regular transactions) and its cold wallet, which holds the majority of funds offline for security.
The Intelligence Fusion and Strategic Operations (IFSO) unit investigating the case found no signs of an external cyber-attack on WazirX’s systems, suggesting instead an internal scheme involving multiple individuals.
Liminal Custody Under Scrutiny
As part of the investigation, authorities examined Liminal Custody, the company responsible for WazirX’s digital wallets. Police allege that Liminal was uncooperative, failing to provide crucial information requested multiple times, thereby hindering the investigation. The Delhi Police are now reviewing Liminal’s incident management and response protocols, with further clarifications expected in an additional chargesheet soon.
In response, WazirX has handed over Know Your Customer (KYC) documentation and transaction data to regulators working to determine the hack’s full scope and methodology.
As the digital age advances, so do the threats. This incident highlights the delicate balance between innovation and security in the crypto world.
