Indian Crypto Exchange Developer Arrested After $44 Million Hack
Indian police have arrested Rahul Agarwal, a 30-year-old software engineer who worked for the cryptocurrency exchange CoinDCX. The arrest follows a significant security breach in July where the exchange lost approximately $44 million (245 million BRL) in stablecoins. Agarwal is now a suspect in the ongoing investigation.
According to The Times of India, Agarwal was issued a company laptop for professional use but allegedly used it for personal projects as well. This detail has become a focal point in the investigation.
Divided Opinions on Social Media
The case has sparked considerable debate online. Some believe Agarwal is directly involved in the theft, while others suggest he may be a victim himself. This latter group posits that his computer may have been compromised, allowing hackers to steal his credentials and, subsequently, access the exchange’s systems.
Details of the Hack and Arrest
The security breach occurred on July 18th. Investigations revealed that CoinDCX lost $44.2 million in USDT and USDC stablecoins. Agarwal was arrested on Saturday, July 26th.
“Rahul was a permanent employee of the company and had been given a laptop strictly for professional use,” local authorities stated. “He came under investigation after the company discovered that an unknown person had invaded the system at 2:37 AM on July 19th and transferred 1 USDT to a wallet.”
The authorities added, “Around 9:40 AM, the intruder diverted $44 million and transferred the amount to six wallets.”
While maintaining his innocence, Agarwal admitted to using the company laptop for freelance work for three or four other companies. This admission has fueled speculation that he may have fallen victim to a social engineering attack, similar to other high-profile crypto heists.
Agarwal’s LinkedIn profile indicates he has been with CoinDCX for two years and three months and has worked in software development since 2017.
CEO’s Response and Security Concerns
CoinDCX faced criticism on social media after its initial statement about the hack. A company employee reportedly asked customers to post positive comments, such as “thank you for the transparency,” on the announcement.
On Thursday, Sumit Gupta, CEO of CoinDCX, stated that he could not provide further details due to the ongoing investigation.
“That said, based on our preliminary internal investigations, this appears to be a sophisticated social engineering attack. Naturally, in such attacks, company employees are targeted to gain illegal access to the organization’s internal systems. We understand that, at this time, security agencies are investigating the case to locate and track the hackers responsible for the attack.”
Regardless, the incident highlights potential vulnerabilities in the exchange’s security protocols.
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