Investor Frustration Grows as WazirX Hacker Funnels Millions Through Tornado Cash
Investors are growing restless as the hacker responsible for the WazirX breach has begun transferring millions of dollars in user assets through Tornado Cash following the Indian exchange’s $230 million exploit on July 18.
Hacker Dynamics
- The exploiter initiated the transfer of 2,600 ETH valued at $6.5 million to Tornado Cash, according to blockchain security firm PeckShield.
- The U.S. Treasury Department sanctioned Tornado Cash in August 2022 for laundering over $7 billion since its launch in 2019.
- Despite the ban in the U.S., Tornado Cash operates in various jurisdictions including North Korea.
Hacker Tactics
- The WazirX hacker conducted 26 transactions transferring 100 ETH each to Tornado Cash to conceal the flow of funds.
- Transactions began shortly after WazirX’s town hall meeting to discuss its moratorium application.
Security Breach Fallout
Last month, WazirX suffered a significant security breach in one of its multi-sig wallets, resulting in a massive crypto theft in India.
Legal Responses
- WazirX limited Indian rupee withdrawals by 66% post-hack and filed an affidavit with the High Court of Singapore.
- The exchange is seeking a six-month moratorium to restructure its liabilities under its holding company Zettai.
Recovery Challenges
Jason Karachi, managing director at Kroll, expressed skepticism about a full recovery in crypto terms, highlighting a potential range of 52%-57%.
Investors who attended the live session voiced disappointment, citing a lack of new information beyond what was previously disclosed.
Trading will resume on the exchange once creditors approve the restructuring proposal and the court gives its sanction.
Hot Take: Stay Informed and Cautious
Stay informed about ongoing developments and exercise caution when investing or trading in the cryptocurrency space. Security breaches and hacks remain a prevalent risk, and it’s crucial to stay vigilant to protect your assets.
Sources:
– Etherscan
– PeckShield
– Arkham Intelligence
– YouTube
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