The hacker behind the massive $235 million theft from WazirX, an Indian crypto exchange, has recently transferred approximately $10 million through sanctioned Tornado Cash. This move was reported by blockchain security firm Cyvers, indicating a troubling trend in the realm of cryptocurrency theft. The hacker has managed to launder $10 million in Ethereum, with deposits reaching as high as $2 million in ETH. It is alarming to see how sophisticated these tactics have become, with the hacker even shifting 5,000 ETH (worth $12 million) to a new wallet address, “0x2…968.”
Market analysts have drawn parallels between the WazirX hacker’s laundering techniques and those utilized by the notorious Lazarus Group, known for backing North Korea. The Lazarus Group has been linked to over $2 billion in crypto thefts, funding illicit activities for the North Korean government. Like the hacker, the Lazarus Group frequently relies on Tornado Cash to obfuscate transactions, employing complex laundering processes that involve chain-hopping. These comparisons shed light on the growing sophistication of cybercrime in the crypto space.
In response to the theft, WazirX announced an early withdrawal window for users to access 66% of their Indian rupee (INR) token balances, allowing them to retrieve funds sooner than expected. However, some users have expressed discontent with this partial access and raised questions about when full crypto withdrawals will resume. The exchange’s legal team has hinted that users may only recover 55% to 57% of their crypto holdings, adding to the uncertainty surrounding the situation.
Amidst the turmoil, WazirX has taken the step of filing for restructuring in Singapore to manage its liabilities effectively. This move signals a significant shift in the exchange’s operations and highlights the challenges it faces in the aftermath of the massive theft. As WazirX navigates these uncharted waters, it will be crucial for the platform to rebuild trust with its users and implement robust security measures to prevent future breaches.
Overall, the impact of the WazirX hacker’s actions extends far beyond the immediate loss of funds, underscoring the need for heightened vigilance in the crypto community. By learning from this incident and strengthening security protocols, exchanges can better protect user assets and uphold the integrity of the burgeoning cryptocurrency market.
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