New Delhi: The investigation into the hacking of the WazirX cryptocurrency exchange has indicated that one of the prime suspects may have fled to Bangladesh, sources revealed. The probe has hit a roadblock as law enforcement faces challenges due to the ongoing unrest in the neighbouring country.
Sources said the investigation uncovered that Masud Alam, a suspect arrested earlier in West Bengal, had opened a WazirX account under the name Souvik Mondal. He reportedly sold this account via Telegram to another individual, M Hasan, who allegedly used it to breach the crypto exchange. While Alam has been apprehended, Hasan is believed to have crossed into Bangladesh two months ago. It remains unclear whether Hasan is a citizen of Bangladesh.
On July 18 this year, WazirX, a cryptocurrency exchange, suffered a significant cyberattack that resulted in the theft of approximately USD 230 million in digital assets, equivalent to around Rs 2,000 crore.
While the account sold by Alam appears central to the breach, police are yet to disclose whether it was directly used to hack the exchange’s server. The first chargesheet in the case was filed in Nov.
Investigators are now preparing to file a supplementary chargesheet, which will include statements from individuals associated with another firm that previously had ties to WazirX. By questioning these individuals, police hope to uncover more details about the hack and identify additional accomplices.
Sources revealed that the cyberattack on WazirX involved a two-pronged approach. Hackers first targeted the hot wallet, a digital wallet used for active transactions, and simultaneously attempted to breach the cold wallet, a secure offline storage solution and the last line of defence for cryptocurre-ncy exchanges.
To investigate the alleged misuse of multi-sig wallets, police seized three laptops from WazirX. These devices were used by authorised signatories for transaction approvals. The forensic examination of the seized devices, along with those from the other firm, is still pending, sources said.
Alam, the only arrest made in the case so far, was apprehended by Delhi Police’s cyber cell from East Midnapore district in West Bengal. He remains in judicial custody.
