Key Figure Arrested in $230 Million WazirX Crypto Hack

Police in West Bengal apprehended Masud Alam, implicated in the high-profile WazirX cryptocurrency hack that left over $230 million inaccessible to users. Investigators revealed that Alam allegedly used a fake account under the alias “Souvik Mondal,” selling it to a hacker via Telegram, ultimately facilitating the massive security breach on the WazirX exchange. This hack exposed vulnerabilities in WazirX’s security and led to significant financial losses among its users, who continue to express outrage, particularly amid a robust crypto bull market.

The hack targeted WazirX’s multi-signature wallet system, which required approvals from six signatories, including one from Liminal Custody, a third-party security provider for WazirX. This arrangement, however, failed to prevent the attack, raising questions about the security protocols both companies had in place. According to the charges, Liminal Custody has not provided full cooperation in the investigation, delaying essential information needed by authorities to pursue leads on the main hacker, who remains at large.

Since the hack, WazirX has launched a partial recovery initiative, aiming to return a portion of the affected assets to users. Under this scheme, 55% of users’ holdings will be restored, while the remaining balance will be issued in USDT tokens, keeping significant funds effectively locked. A $23 million bounty has been announced to incentivize information or actions that might help recover the stolen assets, yet no leads have emerged thus far. This stalled recovery effort has left users increasingly frustrated as the value of major cryptocurrencies rises, further compounding their financial losses.