Delhi police have arrested a suspect allegedly linked to the theft of at least $230 million worth of cryptocurrency from the India-based platform WazirX earlier this year.

The suspect, identified as Masud Alam from West Bengal, was detained on Thursday. The Indian newspaper Times of India described the arrest as “a significant breakthrough in the ongoing investigation” into the WazirX hack.

According to media reports, Alam allegedly created an account on WazirX using a false name and later sold it to another individual on Telegram. This account was then used to breach the exchange. The reports did not specify the potential punishment Alam could face.

The police investigation revealed that the cybercriminals behind the WazirX hack reportedly drained the platform’s “hot” wallet for transactions and attempted to breach its “cold” wallet, which stores funds offline with enhanced security measures.

The firm responsible for securing WazirX’s wallets, Singapore-based Liminal Custody, has reportedly refused to cooperate with the investigation or disclose the data requested by the police, hindering efforts to trace the stolen assets.

Following the WazirX hack, Liminal Custody said that its platform, infrastructure, wallets and assets remained secure. “Our operations have not been disrupted, and we continue to process transfers and withdrawals for all customers without interruption,” the company said at the time.

In a statement issued in July, WazirX said that despite its efforts to protect customer assets, the attackers “appear to have breached” its security measures prior to the theft. Indian media also reported that local police seized laptops from WazirX to investigate the alleged misuse of its multi-signature wallets, which have extra security layers.

According to a report by Cointelegraph, the hack was not a result of vulnerabilities in WazriX's systems but was instead caused by external access gained through deceptive practices.

Founded in 2017, WazirX is one of India’s largest cryptocurrency exchanges. In June, the company reported holding approximately $500 million in reserves.