2 weeks Ago
Indian police recently arrested a suspect linked to the July cyber attack on the cryptocurrency exchange WazirX, during which about $234 million was stolen. The accused has been identified as SK Masud Alam from West Bengal. It has been determined that the accused had a major role in planning the attack on the platform by opening a fake account.
According to India Today, Alam registered with WazirX under the name Souvik Mondal, a fraudulent WazirX account. This account was later sold to an individual known as M Hasan through Telegram, and the person is said to have conducted the cyber attack. The Delhi Police chargesheet describes such events and labels Alam’s arrest as an important moment in this ongoing operation.
The arrest is significant for authorities as they attempt to uncover the hack. This case has raised a lot of controversy about WazirX's measures regarding account creation. Investigators are now investigating Alam for his role in the cyber attack, and more insights would reveal more information about the hack operation.
The chargesheet also highlights the lack of cooperation from Liminal Custody, the firm responsible for securing WazirX's digital assets. According to the investigation, Liminal failed to respond to repeated requests for essential information regarding the hack. Despite multiple notices, Liminal did not provide the necessary details, which has raised concerns about their level of accountability in this case.
Liminal initially claimed that their audit reports confirmed no breach in WazirX’s user interface or front-end systems, but these statements were questioned after the hack. The investigation has shown that Liminal’s actions, or lack thereof, will be further scrutinized in an upcoming supplementary document, shedding more light on the company's involvement in the security breach. WazirX, on the other hand, has been more cooperative throughout the investigation.
The chargesheet reveals that the exchange provided critical information, including KYC details and transaction records, to assist law enforcement in their inquiry. Authorities also seized three laptops from WazirX, which authorized signatories used to approve transactions. The investigation further confirmed no unauthorized access to the exchange’s systems, either from internal or external sources.
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