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A Bengali man has been arrested for his suspected involvement in WazirX's $235 million hack.
Delhi Police arrested the unnamed man for allegedly participating in the theft, which involved a fake account sold via Telegram that allowed unauthorized access to WazirX's wallet.
The Indian cryptocurrency exchange has cooperated with authorities in their investigation, offering hardware, KYC records, and transaction logs. In September, a Singapore court granted WazirX a four-month moratorium after the judge concluded the exchange acted in "good faith" by seeking the moratorium.
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A moratorium application is a legal request to temporarily halt legal actions or financial obligations, giving the company time to restructure or resolve financial issues.
As part of the deal, WazirX must disclose its wallet addresses via court affidavit and must respond to user queries. Additionally, it must also reveal its financial accounts within six weeks and ensure that future resolution voting occurs on an independent platform.
According to a chargesheet, the hack was not a result of vulnerabilities in WazriX's systems but was instead caused by external access gained through deceptive practices.
“It was suspected that [the suspect] was the part of well organized gang of hackers who breached [WazirX’s] platform by opening fictitious account,” the chargesheet stated.
The suspect stated that a “buyer of crypto account through Telegram” offered him a “good amount” for WazirX crypto accounts.
The Indian Cyber Crime Coordination Centre (IFSO) confirmed that WazirX’s internal systems were uncompromised.
WazirX's digital custody partner, Liminal, accused the exchange of misleading the public and shifting the blame. In an October statement, Liminal said that WazirX continues using their services, keeping millions of its assets on Liminal, despite blaming it for the breach.
“Despite their accusations, as of today, approximately $50 million of their user assets continue to remain on wallets accessed via Liminal Infrastructure,” Liminal said.
In light of ongoing discussions regarding the 240,000 wallet addresses, we have been approached to clarify our role in this matter.
— Liminal Custody🚀 (@liminalcustody) October 22, 2024
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Here's a detailed account of our stance and the facts surrounding this update.
🔗https://t.co/8zL4fhlw7I
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WazirX has stated it is is “in the process of migrating the remaining assets held on Liminal to new multisig wallets.”
