WazirX hacker transfers $6.5 Million worth ETH to Tornado Cash
Anxiety among investors is mounting as the perpetrator of the WazirX hack begins to move millions in stolen assets to Tornado Cash, following the significant digital heist from the Indian exchange amounting to $230 million on July 18.
In the early hours of Tuesday, the malicious actor started transferring 2,600 ETH, which is equivalent to $6.5 million, into the controversial mixer Tornado Cash, as detected by the blockchain security company PeckShield.
In a move by the U.S. Treasury Department back in August 2022, Tornado Cash was officially blacklisted due to allegations that it had facilitated the laundering of over $7 billion in cryptocurrency since its inception in 2019. Despite this, the service remains active in several regions, including North Korea, skirting the U.S. ban.
A report from the blockchain analysis firm Arkham Intelligence reveals that the culprit behind the WazirX hack has executed 26 separate transactions, sending 100 ETH each time to Tornado Cash, aiming to obscure the origin of the funds. These operations began shortly after WazirX held its initial public meeting regarding their petition for a temporary halt.
WazirX fell victim to a significant security breach last month, involving one of its multi-sig wallets, marking it as one of the most substantial cryptocurrency thefts on Indian soil.
After the breach, WazirX imposed a 66% cap on withdrawals in Indian rupees for its users and has pursued legal avenues by submitting an affidavit to the High Court of Singapore.
The platform is seeking a half-year moratorium to allow its parent entity, Zettai, sufficient time to reorganize its financial obligations.
WazirX has announced that trading activities will recommence following creditor approval of the restructuring plan and subsequent court endorsement.
