Exclusive: WazirX Hack Probe Reached a Dead End in Bangladesh Coup

by

As a seasoned crypto investor with over a decade of experience in this digital frontier, I can’t help but feel a sense of disheartened frustration when recalling the WazirX hack incident. Five months have passed since the heist, and yet the culprits remain at large, leaving the desi crypto community in a state of uncertainty. The recent political turmoil in Bangladesh has only served to complicate matters further, as it seems the main suspect, “Hasan”, may have slipped through the fingers of Indian investigators.

For approximately five months, an unidentified group has successfully hacked the WazirX exchange, stealing roughly Rs 2000 crores worth of cryptocurrencies that belonged to the public. This event has caused quite a stir within the Indian crypto community. To date, the Delhi Police, who are handling the investigation, have apprehended an individual from West Bengal on charges of selling his WazirX account details to the hackers.

As reported by police, SK Masud Alam, who was apprehended, is suspected of having illegally sold access to his WazirX account to an individual called “Hasan.” This person then supposedly exploited the account to infiltrate the exchange and carry out the hack on July 18. In their court filing, Delhi Police have stated that Hasan’s last known location was tracked in Bangladesh, a neighboring country that has recently undergone a coup and change of government.

Currently, the ongoing investigation into the WazirX hack has hit a wall over the past month, according to well-informed sources. This roadblock is due to recent political upheaval in Bangladesh and tense relations between India and Bangladesh regarding allegations of minority Hindu population persecution. At present, Indian investigators are finding it challenging to gain entry into Bangladesh for an investigation, as only diplomats are currently permitted within the country, which is experiencing widespread turmoil.

Coincidentally, as Delhi Police Special Cell apprehended Masud Alam in West Bengal, Bangladesh was experiencing a significant political upheaval, with Prime Minister Sheikh Hasina being ousted by a popular movement backed by the Bangladeshi army. Given this recent political instability, investigators from the Delhi Police are concerned that key suspects, notably “Hasan”, may have used this time to either flee or go into hiding.

WazirX Hack Investigation Progress So Far

Over the past five months, my work as a researcher has led to the arrest of an individual named Masud Alam, hailing from Medinipur, West Bengal. This development was a result of a criminal investigation into a hack, orchestrated by Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO).

As reported by the police, Hasan reached out to Masud on Telegram, requesting him to set up a WazirX account for a certain fee. The police claim that Masud had registered a WazirX account under the alias Souvik Mondal, a West Bengal resident, using his own KYC details.

As a small-time crypto investor, I found myself unwittingly involved in an intriguing incident. You see, someone else – let’s call him Souvik – used my Aadhaar card details for Know Your Customer (KYC) verification and his own phone number for One Time Password (OTP) confirmation. Souvik, who was uneducated and a daily wage laborer, had no prior knowledge of cryptocurrency.

At that specific moment, a coup occurred in Bangladesh, preventing us from obtaining entry permission and locating Hasan. Currently, there’s a full diplomatic process underway, involving both the Ministry of Home Affairs (MHA) and the Ministry of External Affairs (MEA).

The Delhi Police intends to submit an additional court document detailing their findings in the ongoing investigation no later than February 2025. It’s yet to be determined if they can locate “Hasan,” a key suspect connected to the WazirX hack case, as apprehending him will be crucial for the progression of the investigation.

Read More

2024-12-19 14:13