A cryptocurrency wallet linked to the hacker responsible for the $235 million theft from WazirX, an Indian crypto exchange, has moved a substantial portion of the stolen assets through Tornado Cash, a sanctioned cryptocurrency mixing service. According to Cyvers, a blockchain analytics firm, the hacker transferred 2,600 Ether (ETH), equivalent to roughly $6.5 million, in a series of transactions aimed at laundering the stolen cryptocurrency.
The wallet, which had held $6.7 million as of September 2nd, now contains only $154,000 after the hacker executed 26 separate transfers of 100 ETH each to Tornado Cash within a single hour. This laundering attempt is part of the fallout from the major security breach at WazirX on July 18, which continues to impact the exchange’s operations.
In response to the breach, WazirX has expedited the process for users to withdraw up to 66% of their Indian rupee-denominated balances, moving the date forward from September 9th to offer quicker access to funds. Despite withdrawing withdrawals on August 26th, 34% of rupee-denominated balances remain frozen due to ongoing investigations by law enforcement. WazirX is also addressing legal challenges related to cryptocurrency withdrawals as part of its restructuring efforts in Singapore.
The exchange is working to restore normal operations while navigating the legal and operational complexities following the hack.
Summary:
- Funds Laundered: The hacker moved $6.5 million worth of stolen Ether through Tornado Cash.
- Balance Reduction: The hacker’s wallet balance dropped from $6.7 million to $154,000 after multiple transactions.
- WazirX Response: WazirX accelerated withdrawal processes and is addressing legal challenges post-hack.