Latest Update on WazirX Hack
Learn about the recent movements of the hacker responsible for the $230 million breach in July and the implications for WazirX customers.
Hacker Uses Tornado Cash for Stolen Funds
On September 3, 2024, the hacker behind the $230 million WazirX breach transferred $6.5 million worth of ETH to Tornado Cash.
- The attacker moved 2,600 ETH through the cryptocurrency mixing service.
- This action follows a series of transactions totalling 26, with each moving 100 ETH to Tornado Cash.
- Concerns arise regarding the recovery of these stolen assets due to the use of the service known for obscuring transaction trails.
WazirX Security Breach Details
In July, WazirX experienced a significant security breach that resulted in the theft of over $230 million in cryptocurrencies.
- The breach targeted a multi-signature wallet, leading to one of India’s largest cryptocurrency thefts.
- The stolen funds included $100 million in Shiba Inu tokens and $52 million in Ether, among other assets.
- In response, WazirX imposed a 66% limit on Indian rupee withdrawals and took legal steps to restructure its liabilities.
Recovery Efforts and Investor Concerns
Recent discussions with investors revealed concerns about the potential recovery of funds following WazirX’s restructuring efforts.
- Kroll’s managing director stated recovery in crypto terms is unlikely to reach 100%, with estimates ranging from 52% to 57%.
- Investors were disappointed by the lack of new information provided in a recent town hall meeting.
- WazirX began allowing 66% of Indian rupee token balances to be withdrawn, but 34% remains frozen during ongoing investigations.
Suspected Culprit Behind the Attack
The hack on WazirX is believed to be the work of Lazarus, a North Korean hacking unit known for laundering stolen funds.
- Lazarus is estimated to have laundered over $1 billion through Tornado Cash before facing sanctions in 2022.
- Once creditors approve the restructuring proposal and the court sanctions it, trading on the WazirX platform is expected to resume.
Hot Take: Stay Informed About WazirX Security
Stay updated on the latest developments regarding the WazirX hack and its impact on customers and investors.
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