The WazirX crypto heist saga continues to unfold as authorities make headway in their investigation. In a significant breakthrough reported by local news outlets, Delhi Police have detained a suspect in connection with the notorious July hack. The theft, which amounted to a staggering $235 million, left countless investors in a state of financial turmoil and discontent with the exchange’s response to reimburse affected customers. This article delves into the latest developments surrounding the case and the ongoing pursuit of justice by WazirX users.
Authorities Detain Suspect Linked to the Crypto Heist
In a significant development, a man from West Bengal has been apprehended by the Delhi Police for his alleged involvement in the WazirX crypto hack. As reported by India Today, the suspect, identified as SK Masud Alam, was detained by the Special Cell of the Delhi Police in collaboration with West Bengal’s East Midnapore district authorities. The arrest followed a meticulous investigation conducted by the Intelligence Fusion and Strategic Operations (IFSO) division, unveiling Alam’s purported role in facilitating the hack.
The investigation suggests that Alam opened a WazirX account under a false identity, Souvik Mondal, and subsequently sold the account to another individual, M Hasan, via Telegram. Hasan allegedly utilized this account to execute the crypto heist. Interestingly, the IFSO found no evidence of unauthorized access to WazirX’s systems, either locally or remotely, prompting authorities to speculate about Alam’s potential involvement in a larger network of cybercriminals. As of now, no additional arrests have been made.
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The investigation further underscored WazirX’s cooperation, with the crypto exchange providing crucial data to aid the probe. However, the spotlight also fell on the exchange’s digital custody partner, Liminal Custody, which allegedly failed to furnish requested details, raising concerns about its security protocols. In response, Liminal refuted these claims in an official statement, emphasizing their commitment to cooperating with authorities and maintaining transparency throughout the ongoing investigations.
WazirX Users Continue Seeking Answers
Despite the strides made in the investigation, many WazirX users remain dissatisfied with the exchange’s response in the wake of the July hack. Questions persist regarding whether the breach was orchestrated internally, by Liminal, or by an external third party, prompting users to seek more comprehensive answers from the authorities. Additionally, concerns have been raised regarding WazirX’s restructuring plan, which was announced in September.
One vocal critic, operating under the pseudonym “Justice For WazirX Users” on social media platform X, has accused the exchange of misleading users with its restructuring scheme. The user claims that by agreeing to the scheme, investors unknowingly redirected potential bull run profits to anonymous tokens, labeling the plan a scam. The demand has been made for the restoration of 55% of the crypto value rather than its equivalent in USD.
In light of these grievances, a group of users is reportedly preparing to file a $600,000 class-action lawsuit against WazirX. As detailed by Bitcoinist, the legal action aims to recover the full crypto balance for withdrawal, rather than the 55% initially promised by the exchange. Additionally, WazirX faces two other lawsuits, including one demanding an in-depth investigation into the hack.
As the global crypto market continues to evolve, reaching a total market capitalization of $2.9 trillion according to a recent analysis, the ramifications of the WazirX heist serve as a cautionary tale for investors and exchanges alike. The ongoing investigation and user responses highlight the critical need for enhanced security measures and transparency in the crypto industry.
