The hacker responsible for stealing more than $235 million from Indian cryptocurrency exchange WazirX transferred about $10 million through sanctioned Tornado Cash in the past 24 hours, according to blockchain security firm Cyvers.
In a message dated September 5 to CryptoSlateCyvers reported that the hacker began moving assets the day before. So far, $10 million in Ethereum (ETH) has been laundered through Tornado Cash, including deposits of about $2 million in ETH.
Cyvers also noted that the hacker moved approximately 5,000 ETH (valued at $12 million) to a new wallet address, “0x2…968.”
Market analysts have observed that the WazirX hacker’s money laundering tactics resemble those employed by the North Korean-backed Lazarus Group, which is believed to be behind over $2 billion in cryptocurrency thefts and funding the activities of the North Korean government.
The Lazarus group often uses Tornado Cash to mask its transactions as part of a sophisticated laundering process, which sometimes involves switching between chains.
WazirX Update
These laundering activities come as WazirX announced an early withdrawal window for users to access 66% of their token balances in Indian Rupees (INR). Originally scheduled for September 9, the exchange moved up the withdrawal date, allowing users to access the funds earlier.
On September 3, Nischal Shetty, the co-founder of Indian cryptocurrency trading platform, said:
“Phase 2 of INR withdrawals is ahead of schedule. We are working tirelessly to achieve even faster results. Our goal is to be ahead of all the timelines we share. We will do our best to achieve this.”
However, some users have expressed dissatisfaction with the partial access and wondered when cryptocurrency withdrawals would resume. WazirX’s legal team reportedly said that users would only be able to get back 55-57% of their cryptocurrency holdings.
Meanwhile, the exchange has since filed for restructuring in Singapore to meet its liabilities.
Mentioned in this article
Liam “Akiba” Wright
Also known as Akiba, Liam is a journalist, editor, and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to bring about positive change on a large scale.
