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

It’s been five months since unknown persons hacked WazirX exchange and took off with Rs 2000 crores of public money in the form of cryptocurrencies, a case that has shook the desi crypto community. Till now, the Delhi Police, that is investigating the hack, has arrested a man from West Bengal who allegedly sold his WazirX account details to the hackers.

According to police, the arrested accused SK Masud Alam had allegedly sold credentials of WazirX account to a man named “Hasan”, who used the account to infiltrate the exchange and commit the hack on July 18. Delhi Police, in their chargesheet filed in the court, have said that Hasan’s last location was traced in Bangladesh, India’s neighbour that recently witnessed a coup and regime change.

Now, as per highly sourced places privy to the WazirX hack, the ongoing probe has reached a dead end for the past one month, due to the recent coup in Bangladesh and strained relationship with India over alleged persecution of minority Hindu population. As of now, Indian officers are finding it difficult to enter Bangladesh for any form of investigation and only diplomats are allowed in the country currently simmering with unrest.

Incidentally, when a team of Delhi Police Special Cell, arrested Masud Alam from West Bengal, it was the time when incumbent Bangladesh Prime Minister Sheikh Hasina was ousted by a popular movement, supported by Bangladeshi army. In the backdrop of recent political turmoil, investigating officers of Delhi Police fear that the main culprits especially “Hasan” have received enough buffer period to make an escape or atleast go underground.

WazirX Hack Investigation Progress So Far

In the past five months, the criminal investigation into the hack, conducted by Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO), has resulted in the arrest of Masud Alam from Medinipur in West Bengal. According to the charge sheet filed by Delhi Police in AGM court at Patiala House Court, Delhi, Masud Alam was a small time crypto enthusiasts who made meagre investments in different crypto exchanges including WazirX.

According to police, Masud was contacted by Hasan on Telegram who then asked to purchase a WazirX account, in exchange for a small sum of money. Police said that Masud had created a WazirX account under the name of Souvik Mondal, a resident of West Bengal, using his KYC credentials.

“Souvik Mondal was the mule and Masud Alam used his Adhaar card details for KYC and his own phone number for OTP verification. Souvik was an uneducated, daily wage laborer and had never heard of crypto in his lifetime. We then traced Masud Alam and he revealed to us that he is a small time crypto investor who was contacted by Hasan from Bangladesh,” said a police officer of Delhi Police privy to the probe.

“It was exactly at that time when the coup in Bangladesh happened and we were unable to seek permission to enter the country and trace Hasan. Now, there is an entire diplomatic procedure involving Ministry of Home Affairs (MHA) and Ministry of External Affairs (MEA),” the officer added.

Delhi Police is expected to file a supplementary charge sheet in the investigation latest by February 2025, however, it remains to be see whether they will manage to get hold of “Hasan”, who is the next link in WazirX hack.

Also Read: WazirX Status Report by Delhi Police Trashed by Delhi HC