On July 18, 2024, the cryptocurrency exchange WazirX reported a major cyber attack resulting in a loss exceeding $230 million. Hackers transferred 2,600 ETH ($6.5 million) to the mixer Tornado Cash to launder the funds.
Fund Transfer After Attack
According to security firm PeckShield, the hackers responsible for the WazirX attack sent 2,600 ETH ($6.5 million) to the U.S.-sanctioned mixer Tornado Cash. Using a mixer is a common tactic that cybercriminals employ to make it harder for law enforcement to track and recover stolen crypto.
Impact on WazirX
The exchange stated that this incident has impacted its ability to maintain balanced collaterals against its assets. Withdrawals remain frozen, and trading has been paused since July 21 as the team focuses on partial recovery. Losses are expected to be socialized among users, and some may not receive the total value of their cryptocurrency held on the platform during the attack.
Suspects: Lazarus Group
This attack is believed to be the work of the North Korean state-sponsored hacking organization, Lazarus Group, known for high-profile cybercrimes, including a $600 million hack on the Ronin sidechain in 2022.
The attack on WazirX highlights the importance of strengthening security measures in the cryptocurrency industry and the need for collaboration between exchanges and law enforcement agencies to combat cybercrime.
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