Cyber ​​Attack: The IFSO unit of Delhi Police has submitted a chargesheet in the court in connection with the cyber attack on cryptocurrency exchange firm WazirX, in which the Delhi Police had also arrested the main accused. This attack resulted in a loss of about Rs 2,000 crore in digital assets.

The chargesheet filed by the Delhi Police accuses Alam of opening a WazirX account in the name of Souvik Mondal and selling it via Telegram to another man, M Hassan, who allegedly used it to violate the crypto exchange. The charge sheet also cites the alleged non-cooperation of Liminal Custody, a digital asset custody solutions firm responsible for securing WazirX’s wallets in the case.

The investigation conducted by the Intelligence Fusion and Strategic Operations (IFSO) division of the Delhi Police is centered around the hacking of WazirX 's platform. Cybercriminals reportedly breached WazirX's hot wallet, followed by an attempt on the cold wallet, which stores money offline with greater security measures.

During the investigation, the Delhi Police tried to gather crucial information from liminal custody but the chargesheet reveals that details were not provided by liminal custody, raising questions over its security protocols and accountability.

The police noted that Liminal's lack of cooperation made it difficult to trace the entire chain of events behind the massive crypto heist. The charge sheet states that as the investigation progresses, further details on Liminal's role will be sought in the supplementary chargesheet.

To investigate the alleged misuse of multi-sig wallets, investigators seized three laptops from WazirX that were used by authorized signatories to approve transactions. According to the chargesheet, WazirX has fully cooperated with the authorities by providing crucial data such as KYC details and transaction logs. The investigation by the Indian Cyber ​​Crime Coordination Centre found no evidence of unauthorized access to WazirX's systems either from a location or a remote location.

About WazirX Cyber ​​Attack

The WazirX cyber attack occurred on July 18, resulting in the theft of digital assets worth more than $230 million (roughly Rs. 2,000 crores). It involved a multi-sig wallet with six signers, five from WazirX and one from Liminal Custody. The security breach caused WazirX to lose about 45 percent of its assets.

WazirX allows users to buy and sell and trade multiple cryptocurrencies such as Bitcoin, Ethereum, and others. Launched in 2018, it offers a platform for spot trading, staking, and peer-to-peer transactions and offers features such as a native utility token (WRX) and integration with Binance, a global cryptocurrency exchange.

At the same time, a statement was issued by Liminal's legal team, in which it is said, "We would like to clarify that Liminal has not only submitted its response to the authorities, but despite the regional limitations of sharing data, our team has also officially met with IFSO officials to help them. We have no sign of non-cooperation from the authorities and we will support them in this matter with transparency and responsibility. It is important to emphasize that whatever the media reports say, the investigation is still going on with all the parties and it would be very hasty to reach any conclusion at this stage. We advise everyone to use their discretion before forming any opinion based on speculative reports, which may or may not accurately reflect the actual source.