WazirX Crypto Heist: Delhi Authorities Arrest Suspect Linked To The $235 Million Hack

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As a seasoned analyst with over two decades of experience in the financial industry, I’ve seen my fair share of cybercrimes and exchange hacks. The latest development in the WazirX crypto heist is indeed intriguing, and it seems we’re witnessing another piece of the puzzle falling into place. The arrest of SK Masud Alam, a Bengali man linked to the hack, sheds some light on the investigation but raises more questions about the involvement of a larger network of cybercriminals.

In the most recent chapter of the WazirX crypto heist story, a man has been arrested by Delhi Police in relation to the July cyber attack, as per local news sources. The theft of $235 million left many investors disappointed and without their investments just before the second wave of the bull run. This was followed by widespread discontentment over the exchange’s efforts to reimburse affected customers.

Authorities Detain Suspect Linked To The Crypto Heist

Multiple local outlets have shared news about the apprehension of a man from West Bengal, identified as SK Masud Alam, in connection with the hack on cryptocurrency platform WazirX. As reported by India Today, this arrest was carried out by the Delhi Police.

Delhi Police’s Special Cell from West Bengal’s East Midnapore district arrested the suspect following the investigation of the Intelligence Fusion and Strategic Operations (IFSO) division. The investigation revealed that Alam allegedly opened and sold a WazirX account to the hacker.

As per the Delhi Police’s report, the suspect created a WazirX account using the name Souvik Mondal, which was later transferred to an individual named M Hasan through Telegram messaging. It is said that Hasan utilized this account to execute the cryptocurrency theft.

Moreover, the Investigating Forum on Securities and Operations (IFSO) discovered no signs of unauthorized intrusion into WazirX’s system, whether it be local or remote. It is suspected that Alam may be linked to a sophisticated group of cybercriminals. At present, no other suspects have been apprehended in connection with this case.

The Delhi Police’s investigation revealed that WazirX crypto exchange was cooperative, providing essential data for their inquiry. However, it appeared that Liminal Custody, the digital custodian partner of the exchange, failed to provide necessary details when requested. This seemed to bring up concerns about the security measures implemented by the company.

According to ABP Live, Liminal released a statement denying the allegations. They explained that their company has worked together with law enforcement agencies, contradicting the reports published by the media.

As an analyst, I want to clarify that our interactions with the authorities have been cooperative, and we remain actively involved in addressing this issue with transparency and accountability. While media reports may suggest otherwise, it’s crucial to note that the investigations are still underway with all parties concerned. Jumping to conclusions based on current information would be premature at this point.

WazirX Users Continue Seeking Answers

Even though the investigation has made significant progress, numerous WazirX customers remain unsatisfied with the crypto exchange’s response following the July hack. Some users have speculated that the hack could have been orchestrated by the exchange itself, Liminal, or an outside third party, calling for further clarification from the authorities.

Furthermore, there has been apprehension among customers regarding WazirX’s restructuring plan, a matter that was made public in September. The user account “Justice For WazirX Users” has voiced this concern.

Users unwittingly channeled their possible gains from a bull market towards these anonymously issued tokens by accepting the restructuring plan. The restructuring strategy proposed by WazirX appears to be fraudulent! They are demanding 55% of the cryptocurrency’s worth, rather than its USD value.

Last month, users reportedly planned to start a $600,000 class-action lawsuit against the crypto exchange. As reported by Bitcoinist, the legal action seeks to restore the total crypto balance for the withdrawal instead of the 55% WazirX initially promised. The exchange is also facing another two cases, including a lawsuit requesting an investigation into the hack.

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2024-11-15 20:45