A massive cryptocurrency fraud case, linked to one of the largest digital currency trading platforms in India, WazirX, is generating widespread national interest. This issue has prompted the Delhi court to suggest that the Central Bureau of Investigation (CBI) take charge of the inquiry due to the scale of the theft and its technical complexities.
Details of the Case and the WazirX Breach The details of the case date back to July 18, 2024, when the WazirX platform suffered a major breach that resulted in the theft of cryptocurrencies worth $235 million. These funds were stolen from multi-signature wallets, which are used to protect clients' assets on the platform, raising concerns about the security of the platform's technical infrastructure.
After the attack was discovered, Zanmai Labs Pvt. Ltd, the operator of the WazirX platform, filed a formal complaint with the IFSO unit of Delhi Police, which immediately began an investigation. Among the main suspects in the case is SK Masood Alam, who was arrested in 2023 for his role in another hacking incident, where he used the alias "Sovik Mondal" to carry out the attacks.
Ongoing Investigations and International Networks? On May 1, additional sessions judge Sumit Das considered a bail application submitted by SK Masood Alam, who has been in custody for over eight months. The application was once again denied, with the judge indicating a potential existence of an international criminal network behind the attack, and possibly even government support, making the intervention of the Central Bureau of Investigation (CBI) more necessary.
Next Hearing and Anticipated Developments A new hearing is expected to be held on May 19, where the bail application from Alam will be reviewed again amidst growing suspicions regarding the involvement of international entities in the attack. So far, the court has not officially handed over the investigation to the Central Bureau of Investigation, but it has referred the case for further review, which may open the door for a broader investigation. If this information is substantiated, this case could become one of the most serious frauds linked to cryptocurrencies in India, with the potential for a significant impact on the country's digital asset sector.
