Four months after the Rs 2,000 crore WazirX hack, the Delhi Police has filed a charge sheet in the Delhi High Court. The charge sheet, submitted by the Intelligence Fusion and Strategic Operations (IFSO) cell on December 9 at Patiala House Court, follows a preliminary investigation that led to the arrest of one suspect from West Bengal.

The details on the investigation:

The accused, SK Masud Alam, allegedly created a fake account under the name Souvik Mondal. The account was later sold to M Hasan, who used it to breach WazirX’s systems. The charge sheet details that hackers initially targeted WazirX’s hot wallet before attempting to infiltrate the exchange’s cold wallet. The cold wallet stored 45% of user funds and is typically offline for enhanced security.

A big fallout- WazirX and Liminal

The investigation revealed that WazirX had entrusted its cold wallet storage to Liminal Custody, a former security partner. The July 18 hack, which compromised the multi-signature cold wallet, led to a public fallout between WazirX and Liminal Custody. Since then, both parties have accused each other of lapses in security protocols.

Delhi Police has noted that Liminal Custody has not yet been questioned. Their responses to an investigative questionnaire, spanning 119 pages, have been embedded in the charge sheet. However, forensic analysis of devices used by both WazirX and Liminal Custody remains pending. Police have assured that a supplementary charge sheet will be filed after further investigation.

WazirX’s cooperation has been praised in the charge sheet. The company provided transaction logs, KYC details, and server access, aiding investigators in ruling out unauthorized server breaches. The Delhi Police had submitted a status report on the hack’s investigation by November 18, following a petition from an affected WazirX user.

The charge sheet submission marks a significant step in unraveling the complex case. However, unanswered questions regarding Liminal Custody’s role and forensic examinations highlight the need for deeper scrutiny. As investigations continue, the crypto industry keenly watches for developments that could impact trust and security in digital asset exchanges.