The recent revelation of the hacker responsible for the massive theft of over $235 million from the Indian crypto exchange WazirX transferring around $10 million through sanctioned Tornado Cash has sent shockwaves through the crypto community. According to blockchain security firm Cyvers, the hacker has been actively moving assets over the past 24 hours, with $10 million in Ethereum (ETH) already laundered through Tornado Cash. This includes deposits of around $2 million in ETH and the transfer of approximately 5,000 ETH (valued at $12 million) to a new wallet address, “0x2…968.”
Market analysts have drawn parallels between the WazirX hacker’s laundering tactics and those commonly used by the North Korea-backed Lazarus Group, known for being behind more than $2 billion in crypto thefts. The group allegedly funds North Korean government activities and often utilizes Tornado Cash to obscure its transactions as part of a sophisticated laundering process. This process sometimes involves chain-hopping, making it difficult to trace the movement of funds.
The laundering activities of the WazirX hacker come at a time when the exchange announced an early withdrawal window for users to access 66% of their Indian rupee (INR) token balances. Despite the expedited withdrawal process, some users have expressed dissatisfaction with only partial access to their funds and have raised questions regarding when crypto withdrawals will resume. WazirX’s legal team has hinted that users might recover only 55% to 57% of their crypto holdings, adding to the growing concerns within the community.
In response to the ongoing challenges, WazirX has filed for restructuring in Singapore to address its liabilities. The exchange’s decision to seek legal protection highlights the severity of the situation and underscores the need for greater regulatory oversight within the crypto industry. As users await further updates on the status of their funds, the incident serves as a stark reminder of the risks associated with centralized exchanges and the importance of implementing robust security measures to protect users’ assets.
The laundering tactics employed by the WazirX hacker and the subsequent impact on users highlight the vulnerabilities present within the crypto ecosystem. As the industry continues to grapple with security threats and regulatory challenges, it is imperative for exchanges and users alike to remain vigilant and proactive in safeguarding against potential risks. The incident serves as a wake-up call for the need for greater transparency, accountability, and resilience in the face of evolving cyber threats.
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