Originally published on: November 14, 2024
In a significant development regarding the $235 million cyber breach on the WazirX cryptocurrency exchange, a man from Bengal has been apprehended by the Delhi Police on suspicion of being involved in the heist.
Contrary to initial beliefs that the breach stemmed from internal system weaknesses, investigations revealed that it was orchestrated through the sale of a fake account on Telegram to a third party who took advantage of the situation.
WazirX cooperated during the probe by providing essential data such as hardware, Know Your Customer records, and transaction logs to aid the investigation.
It was confirmed by the Indian Cyber Crime Coordination Centre (IFSO) that the internal systems of WazirX remained uncompromised, affirming the effectiveness of the exchange’s security protocols.
The Delhi Police chargesheet clarified that the breach was a result of external access gained through deceptive means, rather than an inherent flaw in WazirX’s systems.
The hackers managed to access WazirX’s multisignature wallet and siphoned off crypto tokens worth $235 million. The accused individual mentioned in the investigation that he was approached via Telegram by a buyer who offered a substantial sum for the compromised WazirX crypto accounts.
Despite facing challenges with third-party service providers responsible for managing digital assets, the investigation made progress, albeit at a slower pace.
In response to allegations from WazirX implicating their digital custody partner, Liminal Custody, the latter released a statement refuting claims of responsibility for the breach. They emphasized that WazirX had retained a significant amount of assets on their platform post-breach, contradicting their accusations.
A WazirX spokesperson assured that efforts were underway to transfer the remaining assets from Liminal to new multisig wallets.
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