- Authorities arrested SK Masud Alam for hacking WazirX and compromising wallets.
- Concerns have arisen about Liminal Custody’s cooperation with investigators.
Delhi Police imprisoned SK Masud Alam of West Bengal for his involvement in the ₹2,000 crore hacking of cryptocurrency exchange WazirX, marking a significant breakthrough. The hack revealed various vulnerabilities in the digital asset market and stands as one of the most serious breaches in the crypto industry.
Alam, according to the IFSO-led investigation, used a WazirX fake account under the name Souvik Mondal. He apparently sold the identical Telegram account to another user, M. Hasan. The report states that the attackers carried out the attack. Alam could be part of an additional cybercrime network, and an investigation is underway to connect more suspects involved in this operation.
The charge sheet also revealed a critical concern regarding Liminal Custody, an organization charged with managing WazirX’s digital wallets. Though Delhi Police had sent many messages demanding that they provide crucial information about the case, Liminal Custody allegedly did not respond or take part, delaying the process of fully uncovering the breach. The police have agreed to resolve this matter in the supplementary charge sheet.
WazirX Stumbles in Freezing Assets Amid Backlash
Users, however, were left in the dark in regard to their withdrawing the money following the hacking incident. Relief by legal avenues is yet to materialize for the aggrieved users. The new arrest brings hope that the investigation will recover the stolen funds and that WazirX users still waiting to access their assets may soon smile again.
The hacker is claimed to have laundered the stolen assets via Tornado Cash, raising questions about the platform’s security. Meanwhile, WazirX customers are concerned since the exchange’s native token, WRX, trades at $0.12, representing a significant drop in value, losing 5.82% over the past month and 8% over the last 90 days.
