The hacker behind the $235 million theft from WazirX, an Indian crypto exchange, has recently transferred around $10 million through sanctioned Tornado Cash within a 24-hour period. This indicates a deliberate attempt to launder the stolen funds and hide their origins. The hacker initiated the movement of assets the day before, with $10 million in Ethereum (ETH) being laundered through Tornado Cash, including deposits of approximately $2 million in ETH. Additionally, the hacker moved around 5,000 ETH (worth $12 million) to a new wallet address, “0x2…968.”
Market analysts have drawn comparisons between the hacker’s laundering tactics and those used by the North Korea-backed Lazarus Group. This notorious group is responsible for over $2 billion in crypto thefts and allegedly supports North Korean government activities. Lazarus Group often utilizes Tornado Cash to mask their transactions as part of a sophisticated laundering process, sometimes involving chain-hopping.
As the hacker’s laundering activities unfolded, WazirX announced an expedited withdrawal window for users to access 66% of their Indian rupee (INR) token balances. Originally scheduled for September 9th, the exchange hastened the withdrawal date to provide users with quicker access to their funds. Nischal Shetty, the co-founder of WazirX, emphasized the platform’s commitment to staying ahead of schedule and delivering prompt results.
User Dissatisfaction
Despite the partial access granted by WazirX, some users expressed dissatisfaction and raised concerns about when crypto withdrawals would resume in full. Reports from WazirX’s legal team suggested that users might only recover 55% to 57% of their crypto holdings, adding to the uncertainty surrounding the situation. In response to these challenges, the exchange filed for restructuring in Singapore to address its outstanding liabilities and navigate the aftermath of the massive theft.
The hacker’s recent actions underscore the ongoing challenges faced by the cryptocurrency industry in combating cybercrime and protecting users’ assets. The parallels to Lazarus Group’s tactics highlight the sophistication and persistence of malicious actors seeking to exploit vulnerabilities in exchanges like WazirX. As stakeholders in the crypto ecosystem strive to enhance security measures and establish robust frameworks for recovery and compensation, the implications of this latest incident serve as a sobering reminder of the importance of vigilance and resilience in the face of evolving threats.
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