Delhi police recently made a significant breakthrough in the investigation of the $235 million breach of the crypto exchange WazirX by arresting a key suspect, SK Masud Alam, from Bengal. According to reports, Alam had allegedly created a fake account on WazirX under the name “Souvik Mondal” and sold it to someone identified as M. Hasan, who then used it to carry out the exploit.
As part of the ongoing investigation, authorities have seized three laptops belonging to authorized signatories of WazirX to examine the potential misuse of multisig wallets. While WazirX has been fully cooperating with providing detailed KYC data and transaction records, the digital asset custody provider, Liminal, has faced criticism for its lack of cooperation.
Despite repeated requests, Liminal reportedly failed to supply relevant information, impeding the police’s efforts to trace the breach completely. This lack of cooperation by Liminal will be highlighted in a supplementary charge sheet as the investigation progresses. The relationship between WazirX and Liminal has been strained, with both parties blaming each other for the breach.
In response to these developments, WazirX has outlined several strategies to maximize fund recovery for its creditors. The exchange plans to reopen the trading platform to restore trading volumes and share fees collected during this period with creditors to facilitate financial recovery. Additionally, WazirX aims to diversify its revenue streams by introducing new services such as a decentralized exchange, staking, an over-the-counter desk, and futures trading.
Furthermore, WazirX is committed to recovering lost and illiquid assets through legal channels to safeguard them for creditors. The exchange is also exploring potential “White Knight” partnerships where investors could provide rescue financing to support the recovery process and stabilize operations.
Overall, the arrest of the key suspect in the WazirX crypto breach marks a significant development in the ongoing investigation, shedding light on the complexities of the case and the efforts being made to recover funds for creditors. As the investigation continues, the cooperation of all parties involved will be crucial in achieving a resolution and holding accountable those responsible for the breach.