Indian Police have arrested SK Masud Alam, a resident of West Bengal, for his alleged role in the WazirX hack. Earlier this year, the hack resulted in over $230 million in cryptocurrency losses, as customers were unable to withdraw their funds. 

Alam is accused of creating a fake account under the alias Souvik Mondal, which he allegedly sold via Telegram to the hacker. This account was later used to exploit the crypto exchange.  

WazirX Hack Remains One of the Largest Security Incidents in 2024

According to local reports, the police chargesheet points to a lack of cooperation from Liminal Custody, a firm responsible for securing WazirX’s digital wallets. Despite multiple requests, Liminal reportedly did not provide critical information, raising concerns about its security practices.  

The hack occurred on July 18 and targeted a multi-signature wallet with six signatories: five from WazirX and one from Liminal. It ultimately led to the loss of nearly 45% of WazirX’s stored assets.  

In response, the exchange launched a recovery plan ten days later, aiming to return 55% of affected users’ holdings. The remaining 45% was to be issued in USDT-equivalent tokens, leaving users with locked assets.  

WazirX also offered a $23 million bounty to incentivize the recovery of stolen funds and announced a $10,000 reward in USDT for any community member providing actionable intelligence. However, the hacker has yet to make any communications. 

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Author: Mohammad Shahid