Delhi Police Arrest Suspect Allegedly Behind WazirX $230M Hack

Delhi Police have detained a West Bengal resident in relation to a cyberattack on cryptocurrency exchange WazirX that led to the loss of over $230 million in crypto assets. The individual, SK Masud Alam, allegedly created a fake account that facilitated the cyber breach.

The Police Investigation

As per the police charge sheet, Alam created a fake WazirX account using the name ‘Souvik Mondal’ and sold it on Telegram to someone named M Hasan, who then used it to hack the exchange. Investigators also pointed out that Liminal Custody, the firm responsible for WazirX’s multi-signature wallets, hindered the probe by withholding essential information.

The police report accuses Liminal of failing to supply requested data, raising concerns over its security practices and accountability measures. The custody firm, however, disputed this, asserting that it has been cooperating with authorities, answering official queries, and meeting directly with officers from Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) unit.

In their investigation of the misuse of WazirX’s multi-sig wallets, which require multiple keys to authorize transactions, authorities seized three laptops from WazirX that authorized signatories used to approve transactions. The chargesheet also noted WazirX’s full cooperation, with the exchange providing key information, including Know Your Customer (KYC) records and transaction logs.

The WazirX Hack

The July 18 WazirX hack resulted in a loss of over $230 million in digital assets. The breach involved a multi-signature wallet with six signatories—five from WazirX and one from Liminal Custody.

CoinTab reported that the hacker stole around $234 million from WazirX’s secure multi-sig wallet, transferred the funds to a new address, and converted them into Ethereum (ETH). The stolen assets included Pepe (PEPE), Gala (GALA), and Tether (USDT).

Established in 2018, WazirX enables users to buy, sell, and trade cryptocurrencies like Bitcoin and Ethereum. It supports spot trading, staking, and peer-to-peer transactions while offering a native token, WRX, and integration with global crypto exchange Binance.

Following the recent struggle, the WRX token has underperformed, currently valued at $0.12. It has declined by 5.82% over the past month and 8% in the last 90 days, reflecting the impact of the breach on user confidence.