Delhi Police Arrest Suspect in $230M WazirX Crypto Hack Case

The suspect’s arrest marks a breakthrough in a case that has left thousands of Indian crypto investors locked out of their funds. Alam’s arrest comes as authorities dig deeper into the hack’s sophisticated execution, involving layers of deception and untraceable transactions.

Custody Firm’s Non-Cooperation Hampers Investigation

A core element of the investigation revolves around Liminal Custody, the security firm tasked with managing WazirX’s multi-signature wallets. Authorities report that Liminal Custody was slow to provide critical data needed for the investigation. The firm responded to these allegations by arguing that misinformation in WazirX’s wallet data complicated their ability to comply.

🇮🇳WazirX Hack Arrest: Delhi Police Arrests Suspect In $230 Million Crypto Heist👀

Delhi Police arrest suspect in $230M WazirX hack, unraveling a web of fake accounts and uncooperative custody services in the investigation. pic.twitter.com/oitTpSDgHJ

— Alala11🐲 (@alala_B9) November 14, 2024

• Key Takeaways from Investigation:

  • Liminal Custody’s non-cooperation has hindered critical progress in the case.

  • Authorities seized three laptops from Zanmai Labs, WazirX’s parent company, to trace unauthorized access.

  • WazirX has requested both local and international exchanges to freeze wallets tied to the hack.

Initial forensic analysis of seized devices has shown no unauthorized access; however, authorities are set to conduct a more detailed review to understand the full scope of the hack.

Investors Left Frustrated as WazirX Remains Locked

The hack’s timing has dealt a heavy blow to Indian crypto investors. With WazirX’s platform largely frozen, users have been unable to access their assets during a favorable market phase. WazirX announced a plan to issue recovery tokens, aiming to compensate affected users based on their account balances, yet many investors remain concerned about the lack of progress and communication.

Despite Alam’s arrest, WazirX founder Nischal Shetty has yet to comment on the hack or provide updates on when users can expect restored access. Meanwhile, reports indicate that the hacker laundered stolen assets through Tornado Cash, a privacy tool used to obscure transaction paths, making recovery efforts even more challenging.

Key Insights:

• Platform Freeze: Investors remain unable to trade or withdraw funds due to the ongoing investigation.

• Recovery Plan: WazirX proposes recovery tokens to compensate affected users.

• Market Impact: WRX token price has dropped to $0.12, with declines of over 8% in 90 days.

As the investigation unfolds, affected WazirX users await clarity on when they can reclaim their assets and resume normal trading activities.