Massive Crypto Heist: Bengal Man Arrested in Rs 2,000 Crore WazirX Breach

In a significant breakthrough, the Delhi Police has arrested SK Masud Alam from West Bengal’s East Midnapore district for his alleged role in the massive WazirX cryptocurrency exchange breach. The July 2023 cyberattack resulted in a staggering loss of Rs 2,000 crore (approximately $230 million) in digital assets.

Also Read: BRICS Digital Platform: Putin’s Plan to Reshape Global Investment

The Complex Web of Deception

According to the police investigation, Alam created a fake WazirX account under the name “Souvik Mondal.” Subsequently, he sold this account through Telegram to another individual, M Hasan, who allegedly used it to orchestrate the breach. This sophisticated scheme targeted both WazirX’s hot wallet and attempted to breach its cold storage system.

The Investigation Process

Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) division is leading the investigation. Furthermore, they seized three laptops from WazirX’s authorized signatories, who approved transactions. Notably, WazirX has fully cooperated by providing essential KYC details and transaction logs.

Understanding the Security Breach

The attack specifically targeted a multi-signature wallet system with six signatories – five from WazirX and one from Liminal Custody. Consequently, this breach resulted in WazirX losing approximately 45% of its holding assets. Interestingly, investigators found no evidence of unauthorized local or remote access to WazirX’s systems.

WazirX Breach: The Liminal Custody Controversy

The Delhi Police chargesheet initially cited alleged non-cooperation from Liminal Custody, the firm responsible for securing WazirX’s wallets. However, Liminal has since clarified its stance, stating that they have actively cooperated with authorities and maintained transparent communication with IFSO officials.

About WazirX

Launched in 2018, WazirX is India’s prominent cryptocurrency exchange platform. The platform enables users to trade various cryptocurrencies, including Bitcoin and Ethereum. Additionally, it offers features like spot trading, staking, and peer-to-peer transactions, along with its native utility token (WRX).