The hacker responsible for the $230 million breach of Indian cryptocurrency exchange WazirX has recently moved $6.5 million worth of Ethereum (ETH) to Tornado Cash, a well-known crypto mixer. This platform is often used by cybercriminals to obscure the trail of illicit funds, making it difficult for authorities to trace the movement of stolen assets.
On September 3, 2024, blockchain security firms and on-chain data trackers reported that the hacker made 26 separate transactions, each transferring 100 ETH, to Tornado Cash. These transfers were executed within a short time frame, effectively concealing the origin and destination of the stolen funds. Prior to these transactions, the hacker’s wallet contained approximately $6.7 million, leaving about $154,000 after the transfers.
The use of Tornado Cash, which has been sanctioned by the U.S. government, complicates efforts to recover the stolen assets. This move is particularly concerning as it undermines the already fragile situation for WazirX users, who are grappling with the loss of their investments. The Indian exchange is currently undergoing a restructuring process, and customers are expected to recover only 55% to 57% of their funds at best, with a potential loss of up to 43%.
This event has intensified the challenges faced by WazirX as it tries to stabilize its operations and regain user trust. The exchange has expedited withdrawals of Indian Rupee (INR) balances to help affected users access their funds, a move initially scheduled for later in the month but brought forward due to the urgency of the situation.
The incident highlights the ongoing vulnerabilities in the crypto industry, where sophisticated cyberattacks continue to pose significant risks to both exchanges and their users. The use of tools like Tornado Cash by hackers adds an additional layer of complexity, making it increasingly difficult for law enforcement and regulatory bodies to track and recover stolen funds. As WazirX navigates its recovery and legal proceedings, the broader crypto community is watching closely to see how such situations will be handled in the future.