CoinDCX Employee Arrested in Crypto Security Breach Investigation
Recent developments in the cryptocurrency world have seen Indian authorities detain a CoinDCX employee in connection with a significant security breach that led to a substantial crypto theft.
Crypto Security Breach: Arrest Made
In a significant turn of events, Bengaluru City police apprehended Rahul Agarwal, a software engineer at CoinDCX, on charges related to a recent hacking incident. This arrest came after Neblio Technologies, the parent company of CoinDCX, filed a complaint on July 22. The complaint highlighted that hackers had accessed Agarwal’s login credentials, leading to suspicions of his involvement.
Hardeep Singh, Vice President for Public Policy at Neblio, revealed that their internal investigation pointed towards the compromise of Agarwal’s work computer credentials. This breach allowed cybercriminals to siphon off millions in cryptocurrency.
The Times of India reported that the Indian crypto exchange suffered a significant security breach on July 19. This breach resulted in $44 million in USDT being transferred from one of the platform’s wallets to six unidentified personal wallets. Despite this, CoinDCX CEO Sumit Gupta assured users that their funds remained secure, clarifying that the affected wallet was utilized for operational liquidity.
Was it a ‘Sophisticated’ Cyber Attack?
In a statement on X, CoinDCX CEO Sumit Gupta commented, “Our preliminary findings suggest this might be a sophisticated social engineering attack.” He added that due to the ongoing investigation, public communication on the matter was restricted.
Gupta emphasized the integrity of the investigation process and confirmed full cooperation with law enforcement agencies. According to Deccan Herald, senior police officials noted that the hackers deceived Agarwal into a bogus job assignment. Initially, Agarwal used his personal laptop but eventually switched to his work computer at the perpetrators’ insistence.
During interrogation, Agarwal allegedly admitted to using his work laptop for side projects, violating the company’s policy. He reportedly earned approximately $17,135 over a year but claimed ignorance of any fraudulent activities. Police believe Agarwal was unwittingly used as a tool by cybercriminals to infiltrate the company’s systems. Although unaware, he was arrested and is currently in police custody for further investigation.
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