- Delhi Police arrest a Bengal man linked to the massive $235M WazirX crypto hack.
- The hack involved a fake account sold on Telegram, not a failure of WazirX’s systems.
- WazirX’s systems validated as secure; third-party custody partner Liminal comes under fire.
- WazirX and Liminal point fingers as assets are slowly migrated to secure wallets.
In a major breakthrough in the investigation of the $235 million WazirX crypto heist, Delhi Police have arrested a man in West Bengal believed to have ties to the high-stakes hack. This development could be a turning point in the case, as law enforcement races to piece together how this massive security breach was orchestrated — and by whom.
The Inside Story: How the Hack Played Out
This wasn’t a simple system failure on WazirX’s end, as the details reveal. According to the police, the hack was engineered through a fake account sold via Telegram, giving hackers the access they needed to drain WazirX’s multi-signature wallet of $235 million in crypto assets. WazirX cooperated with the investigation from the outset, handing over transaction logs, KYC records, and hardware information to help police connect the dots.
https://twitter.com/thisisksa/status/1856976615294554431
Thankfully for WazirX, the Indian Cyber Crime Coordination Centre (IFSO) confirmed that its internal systems are secure. Despite initial fears, this validation clears WazirX of direct security lapses, though the hack has still exposed vulnerabilities in third-party custody management.
Custody Partner Blamed: WazirX and Liminal in the Spotlight
The case doesn’t end with WazirX’s security checks. After the hack, WazirX publicly pointed fingers at its custody partner, Liminal, suggesting that third-party asset management was a weak link in the security chain. Liminal fired back, calling the claims part of a “disinformation campaign,” and revealed that WazirX hadn’t yet removed $175 million in assets from their custody even months after the breach.
https://twitter.com/IndiasCrypto/status/1856766090161930718
This blame game has only heightened frustrations, especially as users wait for WazirX to complete the migration of assets to new multi-signature wallets. For the crypto community, the case is a stark reminder of the risks and challenges that come with relying on third-party custodians.
What’s Next for WazirX and the Search for Justice
The suspect’s arrest has brought hope that more members of this hacking ring might be exposed. According to the chargesheet, the arrested man allegedly sold access to the compromised account for a significant amount, suggesting that a larger network could be involved. This case is a critical test for WazirX’s resilience, as they work to patch up security and regain the trust of their users.
For WazirX, the takeaway is clear: even with top-notch internal security, the broader crypto ecosystem is only as strong as its weakest link. As the investigation unfolds, the hope is that this arrest will be the first of many, leading to justice for the impacted users and helping prevent similar incidents in the future.
