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

In the latest development of the WazirX crypto heist saga, the Delhi Police detained a man for his alleged connection to the July hack, according to local reports. The $235 million theft left millions of investors empty-handed before the second leg of the bull run and dissatisfied with the hacked exchange’s actions to repay its customers.

Authorities Detain Suspect Linked To The Crypto Heist

Various local sources reported on the arrest of a Bengali man for his involvement in WazirX’s crypto hack. According to India Today, SK Masud Alam, a resident of West Bengal, was recently detained 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.

According to the Delhi Police, the suspect opened a WazirX account under a different name, Souvik Mondal. Alam then sold this account to another individual, M Hasan, via Telegram, who reportedly used this account to carry out the crypto heist.

Additionally, the IFSO found no evidence of unauthorized access to WazirX’s systems, locally or remotely. Authorities believe Alam’s connection could be part of a well-organized network of cybercriminals. However, no other suspects have been arrested as of this writing.

The Delhi Police’s investigation also highlighted the crypto exchange’s cooperation, noting that WazirX provided critical data for the probe. It also suggested that the exchange’s digital custody partner, Liminal Custody, had “failed to provide requested details,” which seemingly raised questions about the company’s security protocols.

Per ABP Live, Liminal refuted the claims in an official statement, clarifying that the company has cooperated with authorities, contrary to the media reports:

We have no indication of non-cooperation from the authorities and we continue to engage proactively and to provide our support to address this matter with transparency and responsibility. It is important to emphasise that despite what the media report might insinuate, the investigations with all parties are still ongoing and it is extremely premature to arrive at any conclusions at this stage.

WazirX Users Continue Seeking Answers

Despite the investigation’s breakthrough, many WazirX customers have continued to be dissatisfied with the crypto exchange’s response since the July hack. Several users questioned whether the hack was an inside job from the exchange, Liminal, or an external third party, seeking more answers from authorities.

Moreover, customers have expressed concern with WazirX’s restructuring plan, which was announced in September. X account “Justice For WazirX Users” recently stated:

By agreeing to the restructuring scheme, users unknowingly directed their potential bull run profits to these anonymous tokens. WazirX’s restructuring scheme is a scam! Demand for 55% of crypto value and not 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.