WazirX hacker launders $10 million through Tornado Cash WazirX hacker launders $10 million through Tornado Cash
WazirX is allowing its users to make partial withdrawals of their Inidan Rupee balance on the exchange.
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Updated: Sep. 5, 2024 at 2:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The hacker responsible for stealing over $235 million from the Indian crypto exchange WazirX has transferred around $10 million through sanctioned Tornado Cash in the past 24 hours, according to blockchain security firm Cyvers.
In a Sept. 5 message to CryptoSlate, Cyvers reported that the hacker had begun moving assets the previous day. So far, $10 million in Ethereum (ETH) has been laundered through Tornado Cash, including deposits of about $2 million in ETH.
Cyvers also noted that the hacker moved approximately 5,000 ETH (valued at $12 million) to a new wallet address, “0x2…968.”
Market analysts observed that the WazirX hacker’s laundering tactics resemble those employed by the North Korea-backed Lazarus Group. This group is reportedly behind more than $2 billion in crypto thefts and allegedly funds North Korean government activities.
Lazarus Group often uses Tornado Cash to obscure its transactions as part of a sophisticated laundering process, which sometimes involves chain-hopping.
WazirX update
These laundering activities come as WazirX announced an early withdrawal window for users to access 66% of their Indian rupee (INR) token balances. Initially set for Sept. 9, the exchange moved the withdrawal date forward, allowing users to access funds sooner.
On Sept. 3, Nischal Shetty, the co-founder of the Indian crypto trading platform, stated:
“Phase 2 of INR withdrawals is live ahead of schedule. We’re working tirelessly to deliver even faster results. Our objective is to be ahead of schedule for all the timelines we share. We will try our level best to make it happen.”
However, some users expressed dissatisfaction with partial access and questioned when crypto withdrawals would resume. WazirX’s legal team has reportedly indicated that users might recover only 55% to 57% of their crypto holdings.
Meanwhile, the exchange has since filed for restructuring in Singapore to address its liabilities.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Tornado Cash
$2.63220
Tornado Cash is a decentralized, non-custodial privacy solution built on Ethereum.
WazirX
WazirX is an India-based cryptocurrency exchange with an advanced trading interface and features to Buy, Sell & Trade cryptocurrencies.
Nischal Shetty is the founder and CEO of India’s leading cryptocurrency exchange WazirX.