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WazirX Hacker Resurfaces to Launder Stolen Millions

DailyCoinDailyCoin2024/09/05 09:39
By:DailyCoin
  • The hacker involved in the WazirX downfall has reappeared.
  • Millions of the stolen funds are being shuffled anonymously.
  • Users of WazirX continue to face uncertainty.

The recent cyberattack on India’s largest crypto exchange, WazirX, marked one of the largest heists of the year, resulting in losses amounting to $235 million. The devastating loss has caused financial and operational turmoil for the exchange, which has struggled to recoup the stolen funds or make a full recovery.

As WazirX struggles to regain its footing, the entity responsible for its downfall has reappeared.

WazirX Hacker Spins a Tornado of Cash

After a period of silence following the attack, the hacker(s) responsible for the WazirX breach have resurfaced. On Tuesday, September 3, 2024, blockchain security firm CyversAlert reported that a wallet address linked to the hacker transferred 2,600 Ether to the crypto mixer Tornado Cash .

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The transfer, which occurred seven weeks after the initial attack, was conducted in 26 separate transactions of 100 ETH each, totaling approximately $6.5 million at the time of writing.

🚨ALERT🚨The @WazirXIndia hacker has begun transferring stolen funds to @TornadoCash at https://t.co/bXF5gBKvxj

The incident, which was revealed by the @Cyvers_ system on July 18, 2024, resulted in a $235M loss.

So far, the attacker has moved 2,600 $ETH $6.5M to Tornado Cash!… https://t.co/egLcmhaYYb pic.twitter.com/jIlx9RND2y

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 2, 2024

Despite its weight, the transferred $6.5 million marks only a small fraction of the hacker’s loot, leaving approximately 230 million of the stolen funds unaccounted for. The hacker’s choice of the anonymizing tool Tornado Cash further dampens any remaining hopes of recovery, obfuscating the asset trail and making it impossible to trace.

This recent fund shuffle adds insult to injury for WazirX, particularly as the exchange struggles with its recovery efforts.

WazirX Stuck in Limbo

Since the July 18 hack, the crypto exchange WazirX has not remained the same. From imposing limitations on users’ funds to declaring insolvency, the exchange has struggled with no clear resolution in sight.

Despite users recently regaining access to a portion of their funds on the platform, a broader share of their balance remains inaccessible, resulting in a backlash against the exchange.

WazirX has also revealed its plan to file for restructuring in the Singapore court system. This process will require users to wait for a creditor-approved and court-sanctioned scheme to recover their crypto assets from the exchange.

The mounting issues have left WazirX and its users in a state of uncertainty. There is no clear timeline for when funds will be returned or what additional losses may be incurred.

On the Flipside

  • The WazirX hacker’s use of Tornado Cash underscores growing concerns about the crypto mixer being a favored tool among malicious actors .
  • The exchange’s insolvency has sparked contagion fears across the local Indian crypto community.
  • WazirX’s troubles may further complicate India’s already cautious stance on cryptocurrency.

Why This Matters

The aftermath of the WazirX hack once again underscores the impact and ripple effects of hacks and scams in the crypto industry.

Read this article for more about the WazirX hack and its ripple effects:
WazirX Ditches ‘Socialized Loss’ Strategy After Community Uproar

Discover how crypto exchange Binance is supporting the Cardano network upgrade here: 
Here’s How Binance Is Supporting Cardano’s Upgrade

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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