Recently arrested, Masud Alam is accused of being involved in a large-scale hack on the Indian cryptocurrency exchange WazirX, which occurred in July. The incident resulted in the loss of approximately 45% of the exchange's assets.
Details of the WazirX Incident
According to the Indian news channel India Today, West Bengal native Masud Alam was apprehended for his role in hacking WazirX. The cyber theft involved virtual currencies worth about 20 billion rupees. Alam is accused of using an account under the alias 'Souvik Mondal' to conduct transactions and subsequently sell on the Telegram platform, suggesting internal manipulation with multiple participants.
Role of Liminal Custody and Security Issues
Liminal Custody, responsible for WazirX's digital wallets, is under investigation. Police claim that Liminal was reluctant to provide information necessary for the investigation, complicating the process. Delhi Police continues to examine the company’s role in the incident. WazirX, meanwhile, has informed regulators about its customer documentation and transactions to assess the hack's scale.
Impact on the Digital Asset Industry
As digital assets become more prominent in India's financial sector, establishing robust security infrastructure and legal frameworks are crucial to preventing such incidents in the future.
The WazirX incident underscores the need for enhanced security measures and legal protection to maintain trust among cryptocurrency industry participants. Both exchanges and custodian service providers need to elevate data protection standards and adhere to regulatory requirements.
