As a seasoned researcher with a keen interest in the digital economy and cybersecurity, I find myself intrigued by this recent development in the $235 million WazirX cryptocurrency exchange hack. The investigation’s progression, as outlined in the Delhi Police chargesheet, presents an interesting perspective on the complexities of cybercrime in the crypto world.
In a breakthrough in the investigation of a $235 million hack on the WazirX cryptocurrency exchange, Delhi Police have arrested a man from Bengal suspected of involvement in the theft.
The police report, as shared with CryptoMoon, suggests that the security breach did not originate from flaws within the internal system, but instead was carried out using a fraudulent account that was sold on Telegram to an external party who then misused it.
As a crypto investor, I’ve found myself reassured during this investigation by WazirX’s reported cooperation. They seem to have willingly supplied necessary hardware, customer identification data, and transaction details, all crucial elements needed for a thorough examination.
According to the Indian Cyber Crime Coordination Centre (IFSO), WazirX’s internal systems remained secure and intact, lending credibility to their security protocols that were under question before. This verification from an external source supports the exchange’s claims about its security measures.
Chargesheet details
According to the Delhi Police’s official document, it was not internal system flaws that caused the breach at WazirX, but rather unscrupulous methods used to gain external access and initiate the security incident.
The chargesheet also stated that the hackers accessed WazirX’s multisignature wallet, depleting it of crypto tokens valued at $235 million. It stated:
“It was suspected that [the suspect] was the part of well organized gang of hackers who breached [WazirX’s] platform by opening fictitious account.”
As stated in the chargesheet, the suspect admitted participating in the investigation and revealed that someone on Telegram, who was purchasing cryptocurrency accounts, had offered him a substantial sum for WazirX accounts.
Independent security validation
The impartial examination conducted by IFSO found that WazirX’s systems remained secure during the incident, supporting their claim about the strength of their security infrastructure.
In my analysis, I faced obstacles when dealing with external parties handling the digital assets of the Indian exchange. This hindered our collaborative efforts and consequently, delayed the data gathering process.
WazirX blamed Liminal for the breach
On October 22nd, Liminal Custody, the digital custodian partner of WazirX, issued a statement addressing what they referred to as WazirX’s “misinformation campaign.
In simpler terms, it’s said that the WazirX defense strategy in response to the hack, or breach, involved spreading misleading information about Liminal by releasing false or confusing data and accusations, suggesting that Liminal was at fault for the security incident.
75 days after the hack, Liminal’s declaration indicated that WazirX continued to hold approximately $175 million in assets on their platform, even though they alleged their digital asset custodian was responsible for the security incident.
A representative from WazirX informed CryptoMoon that they are currently transferring the leftover funds kept on Liminal to fresh multi-signature wallets.
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2024-11-14 11:39