WazirX Hack: Indian Authorities Arrest Suspect in $230 Million Theft

• SK Masud Alam has been arrested for alleged connection with WazirX exploit.
• A chargesheet stated that Alam set up a fake account on WazirX. 
• Alam then sold the fake account to M Hasan on Telegram, who carried out the hack.

The Delhi Police in India arrested a suspect in connection with the $230 million hack of Indian cryptocurrency exchange, WazirX. The suspect, SK Masud Alam, is accused of creating a fake account used in the July cyberattack. This arrest marks a significant development in the ongoing investigation. Authorities believe Alam created the account under a false name and then sold it to another individual who executed the hack.

As per a chargesheet filed by the Delhi Police, Alam is suspected of creating a new account on WazirX under the name Souvik Mondal. The authorities believe that the suspect then sold the account to another individual, M Hasan, who is considered to be the person who carried out the actual cyberattack on the Indian crypto exchange. 

The chargesheet also highlighted the non-cooperation of Liminal Custody, an institutional digital asset custody platform, which was responsible for securing WazirX’s wallets. The investigation is being conducted by Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) division as the hunt for the person who attacked WazirX’s hot wallet continues.

Liminal Custody Fails to Provide Answers

As per the chargesheet, the authorities asked for crucial information from Liminal Custody but the firm failed to present the information despite multiple notices. The lack of communication from the company has raised questions regarding its custodial services and security features. 

The police stated that as the investigation progresses, Liminal’s role will be further addressed in a supplementary chargesheet. To investigate the incident, three laptops have been seized from WazirX. These laptops were used for signing the transactions from the exchange’s multisig wallets.