WazirX Cyberattack: Bengal Man Arrested in Rs 2,000 Crore Crypto Heist
A jaw-dropping cyberattack on WazirX in July shook India’s crypto community, resulting in a massive loss of Rs 2,000 crore worth of digital assets. Here’s everything you need to know, broken down into easy points:
The Cyber Heist – What Happened?
1. Massive Breach: WazirX suffered a massive security breach on July 18, losing almost 45% of its holding assets.
2. Hot Wallet Drained: #hackers targeted WazirX’s hot wallet, which stores online funds, and even attempted to breach its cold wallet (offline funds with extra security).
3. Multi-Signature Wallet Compromise: The heist involved a multi-signature wallet with six signatories—five from #wazirX and one from Liminal Custody, their wallet security provider.
Breakthrough Arrest – Who’s Behind It?
Prime Accused Arrested: Delhi Police arrested SK Masud Alam, a resident of West Bengal, from East Midnapore.
Fake Account Setup: Alam allegedly created a fake WazirX account under the name Souvik Mondal and sold it on #Telegram . The account was later used by another individual, M Hasan, to execute the hack.
Liminal Custody’s Role Under Scrutiny
Alleged Non-Cooperation: Liminal Custody, the firm responsible for securing WazirX’s wallets, is accused of not cooperating with the investigation.
Liminal Responds: The company denied these claims, stating it has been fully cooperating with authorities and committed to transparency.
WazirX has shared authorities with KYC details and transaction logs.
Authorized Devices Seized: Investigators have seized three laptops used by WazirX’s authorized signatories for wallet transactions.
Why It Matters for Crypto Traders
1. WazirX Users Impacted: The breach highlights the importance of strong wallet security for traders.
2. Spotlight on Custody Providers: The incident raises questions about the role of third-party custody solutions like Liminal.
3. Regulatory Push Needed: The case shows a growing need for stricter compliance and secure multi-sig wallet practices in India’s crypto space.
What’s Next?
The investigation continues as authorities dig deeper into the misuse of multi-sign wallets and the hacking methods used.
A supplementary chargesheet will address Liminal Custody's alleged lapses further.
About WazirX
Launched in 2018, WazirX is one of India’s leading crypto exchanges, allowing users to trade #Cryptocurrencies like Bitcoin and Ethereum. The platform also integrates with Binance and offers staking, peer-to-peer trading, and its native token (WRX).
Key Takeaway for Crypto Traders
This incident is a wake-up call! Ensure the security of your funds, always use reliable wallets, and stay updated on exchange safety practices.
For more updates on WazirX and crypto safety tips, stay tuned!
Disclaimer: This is just for the educational purpose not a Financial advice, please DYOR before investing anywhere. (Particularly in Local Exchanges).