cryptojournalist
Delhi Police have arrested a suspect from West Bengal in connection with the $235 million hack of WazirX, a major Indian crypto exchange. This arrest could be a major step toward resolving the high-profile case.
The Hack: How It Went Down
According to the police, the hack wasn’t due to any flaw in WazirX’s security. Instead, hackers gained access to the platform through a fake account bought and sold on Telegram. This account was then used to infiltrate the system and steal funds. WazirX has been actively assisting investigators by providing key information like transaction logs and customer records.
WazirX’s Security Stands Strong
The Indian Cyber Crime Coordination Centre (IFSO) reviewed the case and confirmed that WazirX’s internal security was not breached. Instead, the hackers accessed WazirX’s multisignature wallet through external manipulation, draining $235 million in crypto. The suspect claims to be part of a larger hacking ring that set up fake accounts to pull off the theft.
Third-Party Disputes
Liminal Custody, WazirX’s digital asset management partner, has come under scrutiny after WazirX allegedly pointed fingers at them for the hack. Liminal responded by accusing WazirX of deflecting blame and noted that over $175 million of WazirX’s assets were still with them months after the hack. WazirX has since said they’re moving assets to new wallets.
