Cyber Crime
Delhi Police Busts Rs 2,000 Crore WazirX Crypto Heist, Key Suspect Arrested
In the high-profile cyberattack on cryptocurrency exchange WazirX, the Delhi Police have apprehended a suspect from West Bengal. The breach, which occurred in July, led to a loss of nearly Rs 2,000 crore in digital assets.
The arrested individual, identified as SK Masud Alam, allegedly orchestrated part of the cyberattack by creating a fake account under the name Souvik Mondal. This account was reportedly sold via Telegram to another suspect, M Hasan, who is believed to have used it to infiltrate WazirX’s platform.
Alam’s arrest, carried out by Delhi Police’s Special Cell in East Midnapore, West Bengal, is viewed as a critical breakthrough as investigators continue to untangle the intricate web of crypto transactions involved in the case.
According to a chargesheet filed by Delhi Police, Alam’s unauthorized account facilitated a hack on WazirX’s hot wallet. Further attempts were reportedly made on the cold wallet, which contains additional security layers and stores funds offline.
In a surprising development, Liminal Custody, the firm responsible for securing WazirX’s wallets, is accused in the chargesheet of not fully cooperating with the investigation. The document notes that Liminal did not respond to multiple official requests for information, raising concerns about the firm’s security protocols.
The chargesheet mentions that Liminal’s involvement will be further examined in a supplementary report as the investigation advances.
To delve deeper into the alleged misuse of WazirX’s multi-signature wallet, which requires multiple authorizations for transactions, investigators seized three laptops used by WazirX’s authorized signatories. WazirX has reportedly cooperated with the authorities, providing essential data, including KYC information and transaction logs. Despite the breach, no evidence has been found indicating unauthorized access to WazirX’s systems, either locally or remotely.
The WazirX Cyberattack: A Brief
The breach, which took place on July 18, resulted in a significant loss of over $230 million (around Rs 2,000 crore) in digital assets. The attack compromised a multi-signature wallet with six signatories, five of whom were from WazirX, and one was from Liminal Custody. This incident impacted approximately 45 percent of WazirX’s assets.
Founded in 2018, WazirX is a platform for buying, selling, and trading various cryptocurrencies, including Bitcoin and Ethereum. It offers spot trading, staking, and peer-to-peer transactions and features a native token, WRX, along with integration with Binance, a major global cryptocurrency exchange.
ALSO READ: Nominations Open for ‘Women in Cyber’ Honors at FutureCrime Summit 2025
Liminal Responds to Allegations of Non-Cooperation
In response to media reports suggesting non-cooperation, Liminal Custody issued a statement asserting its commitment to full cooperation with the investigation. A company spokesperson clarified that Liminal has complied with all official inquiries, including meeting directly with officials from the Intelligence Fusion and Strategic Operations (IFSO) unit.
“We have proactively engaged with the authorities and remain committed to transparency and responsibility in addressing this matter,” a Liminal spokesperson stated, reiterating the firm’s dedication to regulatory compliance.
The investigation, supported by the Indian Cyber Crime Coordination Centre, is ongoing as authorities aim to resolve the case and reinforce digital asset security practices.