Delhi Police have taken a significant step in the $235 million WazirX crypto breach investigation by arresting SK Masud Alam, a suspect from West Bengal. The arrest, reported by IndiaToday on November 13, alleges that Alam created a fake WazirX account under the alias “Souvik Mondal,” which he then sold through Telegram to an individual named M. Hasan, who exploited it for fraudulent activities.
As authorities press forward, they have seized three laptops from WazirX’s authorized signatories to investigate any potential misuse of multisig wallets. The charge sheet details that WazirX has been fully cooperative, providing comprehensive KYC information and transaction histories. However, authorities have encountered obstacles with Liminal, WazirX’s former digital asset custodian, citing lack of cooperation in tracing the breach’s full scope.
WazirX Recovery Strategy
Amidst the investigation, WazirX has shared its recovery strategy to compensate creditors affected by the breach:
- Trading Platform Relaunch: By reopening trading services, WazirX aims to restore volume and share revenue from trading fees with creditors, directly aiding in financial recovery.
- Revenue Diversification: To boost funds, the exchange plans to launch new services such as a decentralized exchange (DEX), staking, OTC desk, and futures trading.
- Asset Recovery: WazirX is also committed to legal efforts aimed at recovering lost and illiquid assets, implementing safeguards to protect these assets for creditors.
- White Knight Partnerships: The exchange is exploring partnerships with potential investors to secure rescue funding, injecting fresh capital to stabilize operations and ensure creditor compensation.
WazirX’s outlined approach reflects a multipronged effort to recover lost funds and rebuild trust, offering a pathway forward amid the ongoing investigation.