Delhi Police arrests man for WazirX hack: Telegram, fake account and more used to hack into India’s Bitcoin exchange – Times of India

Delhi Police‘s Special Cell has arrested a man in connection with the cyberattack on cryptocurrency exchange WazirX that resulted in an estimated loss of Rs 2,000 crore in digital assets. The accused, SK Masud Alam, a resident of West Bengal, allegedly created a fake account used in the attack. Alam was arrested in West Bengal’s East Midnapore district. This arrest marks a significant breakthrough in the ongoing investigation as authorities work to uncover the complex details of the crypto transactions involved in the cyberattack.

How the hacker stole Rs 2,000 crore from WazirX

A chargesheet filed by the Delhi Police (seen by The Crypto Times) in the WazirX crypto hack case reveals that the accused, SK Masud Alam, allegedly opened a fake account under the name Souvik Mondal and sold it to another individual, M Hasan on Telegram, who then allegedly used it to breach the crypto exchange.
The investigation, led by the Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) division discovered that cybercriminals reportedly drained WazirX’s hot wallet and then attempted to breach the cold wallet, which stores funds offline with enhanced security.
For this, Delhi Police tried to gather important information from Liminal Custody. The chargesheet also highlights the alleged non-cooperation of Liminal Custody, the firm responsible for securing WazirX’s wallets, in the investigation.
Despite multiple notices, Liminal Custody failed to provide crucial information to the police, hindering their efforts to trace the stolen crypto assets. This lack of cooperation raises questions about the security firm’s protocols and accountability in the Rs 2,000 crore theft.
The investigation found no evidence of unauthorised access to WazirX’s systems. WazirX has reportedly cooperated fully with the authorities, providing KYC details and transaction logs. The police also seized laptops from WazirX to investigate the alleged misuse of multi-signature wallets.
The chargesheet indicates that Liminal Custody’s role in the hack will be further investigated and addressed in a supplementary chargesheet.
In July, the popular Indian cryptocurrency exchange, WazirX suffered a cyberattack resulting in the theft of over $230 million (Rs 2,000 crore) in digital assets. The breach involved a multi-signature wallet, impacting nearly 45% of WazirX’s holdings.