Delhi Police have made progress in investigating the $235 million breach of crypto exchange WazirX by arresting SK Masud Alam from Bengal. Alam allegedly set up a fake account on WazirX under the alias “Souvik Mondal” and sold it to M. Hasan, who then used it to carry out the exploit. Authorities have confiscated three laptops belonging to WazirX’s authorized signatories for examination.
WazirX has been fully cooperative, providing detailed KYC data and transaction records, but no evidence of unauthorized access within their internal systems has been found. Authorities have had difficulties working with Liminal, the digital asset custody provider initially responsible for securing WazirX’s wallets, as Liminal failed to supply relevant information, hindering the investigation.
WazirX and Liminal had previously traded blame over the breach, with WazirX accusing Liminal of not upholding security standards, and Liminal faulting WazirX’s management practices. In response, WazirX has outlined strategies to maximize fund recovery for its creditors, including reopening the trading platform to generate revenue, launching new services such as decentralized exchange (DEX) staking, an over-the-counter (OTC) desk, and futures trading, and recovering lost and illiquid assets through legal channels.
The exchange also plans to explore “White Knight” partnerships, where potential investors could provide rescue financing to support WazirX’s efforts to compensate creditors and stabilize operations.
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