Suspect Arrested in High-Profile WazirX Cyberattack, Rs 2,000 Crore in Digital Assets Lost
In a significant breakthrough, the Delhi Police have arrested SK Masud Alam from West Bengal, allegedly linked to the massive cyberattack on the cryptocurrency exchange WazirX. The breach, which unfolded in July 2023, resulted in a staggering loss of nearly Rs 2,000 crore (over $230 million) in digital assets.
Alam is reportedly accused of orchestrating the attack by creating a fraudulent account under the alias Souvik Mondal, which was sold on Telegram to another suspect, identified as M Hasan. This deceitful account was a key entry point into WazirX’s platform, leading to vulnerabilities exploited during the attack.
The cyber heist targeted WazirX’s hot wallet, facilitating unauthorized transactions and attempts to breach its cold wallet, designed with additional security measures to safeguard offline funds. Alam’s arrest by the Special Cell marks a crucial step in unraveling the complex web of crypto transactions linked to the case.
Further complicating matters, Liminal Custody, the firm responsible for WazirX’s digital wallet security, faces scrutiny for allegedly failing to cooperate with the investigation. A chargesheet filed by police suggests that Liminal did not adequately respond to multiple requests for information, raising alarms about its security readiness.
The investigation continues to probe the insecure handling of WazirX’s multi-signature wallet, which requires multiple approvals for transactions. Authorities have seized three laptops belonging to WazirX’s authorized signatories as part of the ongoing inquiry.
With WazirX cooperating with the police by providing crucial data, including transaction logs and KYC information, the focus now shifts to reinforcing security protocols in the evolving landscape of digital assets. The investigation aims not only to resolve the current breach but also to enhance cybersecurity measures to prevent future incidents.
