Delhi Police have made significant progress in investigating the massive $235 million breach of crypto exchange <a href="https://www.cryptoknowmics.com/news/wazirx-to-form-committee-of-creditors-after-230m-hack/" target="_blank" rel="noopener">WazirX</a>, with the arrest of SK Masud Alam in Bengal. Alam allegedly created a fake WazirX account under the name “Souvik Mondal” and sold it through Telegram to an individual identified as M. Hasan, who later used it for the exploit.
<h2>Investigation Unveils Complex Operations</h2>
As part of the ongoing investigation, authorities confiscated three laptops belonging to WazirX’s authorized signatories to check for any misuse of multisignature (multisig) wallets. WazirX has reportedly been fully cooperative, providing detailed KYC data and transaction records. An internal inspection by the Indian Cyber Crime Coordination Centre (IFSO) found no unauthorized access within WazirX's systems. However, investigators report challenges with Liminal, WazirX’s digital asset custodian, claiming the custodian has been unresponsive to requests, hindering progress. Liminal’s lack of cooperation will be noted in a supplementary charge sheet, as authorities continue their investigation.
<h2>WazirX’s Strategy to Recover Funds</h2>
[embed]https://twitter.com/WazirXIndia/status/1854141317909299500[/embed]

Meanwhile, WazirX has outlined a three-part recovery plan to maximize creditor reimbursements. Firstly, the platform aims to reopen trading, generating revenue by sharing collected fees with creditors. Additionally, WazirX plans to diversify revenue streams by launching new services, including a decentralized exchange (DEX), staking options, an over-the-counter (OTC) desk, and futures trading to attract users.

In parallel, WazirX is committed to pursuing legal channels to recover lost assets, preventing unauthorized withdrawals, and securing them for creditor benefit. The exchange is also exploring “White Knight” partnerships, seeking potential investors to inject rescue financing to stabilize operations.

This comprehensive approach underscores WazirX's efforts to restore trust, strengthen security, and provide a roadmap for financial recovery.

<em><strong>Disclaimer: </strong></em>The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Delhi Police Arrest Key Suspect in $235M WazirX Crypto Breach Investigation

Delhi Police advance in the $235M WazirX breach case, arresting a suspect while WazirX outlines fund recovery initiatives for creditors.

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Delhi Police Arrest Key Suspect in $235M WazirX Crypto Breach Investigation

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