WazirX, one of India’s largest crypto exchanges, suffered a cyberattack in July, resulting in the loss of approximately ₹2,000 crore, or 45% of the funds held for its users.
Delhi Police arrested a man named SK Masud Alam from West Bengal for allegedly facilitating the heist by creating and selling a fake WazirX account.
Alam reportedly set up a fake account under a false identity and sold it to another individual, identified as M Hasan, who used it to breach WazirX's system.
The hackers initially targeted WazirX’s hot wallets, which are connected to the internet and more vulnerable, but failed to access the more secure cold wallets.
WazirX uses multi-signature wallets, requiring multiple approvals for transactions. Investigators are examining if this security feature was compromised.
Liminal Custody, responsible for securing WazirX’s wallets, reportedly did not fully cooperate with the investigation, though the company denies any wrongdoing.
Authorities seized laptops from WazirX personnel with transaction approval authority, which could provide further insights into how the heist was carried out.
WazirX is assisting the investigation by sharing essential KYC details and transaction logs, helping trace the flow of stolen assets.
Delhi Police’s IFSO unit is actively investigating, with more details expected in an updated report, known as a supplementary chargesheet.
The attack has raised significant questions about the security of crypto exchanges, emphasizing the need for robust cybersecurity measures in digital finance.
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