A major crypto fraud linked to one of India’s biggest crypto exchanges, WazirX, is now drawing attention at the national level. The Delhi court suggested that the Central Bureau of Investigation (CBI) should take over the investigation.
The case, which involves a massive $235 million (worth ₹2,000 crore) cyber heist, has raised serious concerns about a possible international syndicate behind the attack.
The case is tied to a massive hack that hit WazirX on July 18, 2024, when nearly $235 million (roughly ₹2,000 crore) worth of cryptocurrency was stolen.
WazirX, operated by Zanmai Labs Pvt. Ltd had quickly filed a complaint with the Delhi Police’s IFSO unit after discovering that their Multi-Signature Wallets, which store customer crypto funds, had been drained.
Last year, Delhi Police arrested a man named SK Masud Alam from West Bengal for his role in a major hacking case. He was accused of using a fake name, “Souvik Mondal,” to attack a WazirX account.
On May 1, Additional Sessions Judge Sumit Dass reviewed the bail application of SK Masud Alam, one of the key accused. Alam, who has been in jail for over eight months, has had previous bail pleas rejected.
The judge expressed concern that the case may involve a wider criminal network, potentially with international links or even state support.
He noted that the technical nature of the hack and the scale of the theft require deeper investigation, making it more suitable for a central agency like the CBI to take over.
During questioning, Alam reportedly confessed to connecting with someone named M. Hasan via Telegram, who offered him money in exchange for credentials to access WazirX accounts.
His account had received crypto deposits worth over ₹91 lakh shortly after being created.
Though the court hasn’t officially handed over the investigation, it has sent its order to the CBI Director for consideration. Meanwhile, the bail application for Alam will be heard again on May 19, when more clarity is expected on whether the central agency will take charge.
If proven true, this case could become one of the most significant crypto-related frauds in India.
WazirX was hacked for $230 million, with the Lazarus Group suspected to be behind the cyberattack.
WazirX users need to stay updated on the restructuring process, accept the plan, and possibly verify their accounts to claim their share of the 85% fund recovery.
The next hearing is scheduled for May 19, when the court may decide on Alam’s bail and if the CBI will take over the probe.
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