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Hacker Who Stole $235M from WazirX Moves $6.5M Through Tornado Cash

Sep 3, 2024
  1. Hacker's Fund Transfers
  2. User Fund Withdrawals
  3. Legal Issues and Restructuring

According to Cyvers, the hacker who stole $235 million from Indian crypto exchange WazirX has moved $6.5 million through the sanctioned crypto mixer Tornado Cash.

Hacker's Fund Transfers

In a Sept. 3 post to X, blockchain security platform Cyvers shared that the hacker had transferred a total of 2,600 Ether (ETH), worth $6.5 million at current prices, to Tornado Cash in a bid to launder the stolen funds. Beginning Sept. 2, the wallet address held a total of $6.7 million but now holds just $154,000, after the hacker made 26 separate transfers of 100 ETH to Tornado Cash in just one hour.

User Fund Withdrawals

Meanwhile, WazirX announced that it had begun allowing users to withdraw up to 66% of their Indian Rupee (INR) token balances from the exchange, nearly one week before the withdrawal window was scheduled to be open. In a Sept. 3 post to X, the exchange stated, 'Starting today, all eligible users can now withdraw up to the full 66% limit of their INR balances.' Originally, the withdrawal period was scheduled for Sept. 9, but the exchange moved the window forward to allow users to access their funds sooner. Following the $235 million exploit on July 18, WazirX is currently part of the way through executing a staggered plan to restore its financial operations, including reinstating Indian rupee withdrawals, which commenced on Monday, Aug. 26.

Legal Issues and Restructuring

On Aug. 23, the exchange said 34% of INR balances were 'frozen' and not immediately available for withdrawal due to ongoing investigations with various law enforcement agencies. WazirX suggested there were still legal issues with crypto withdrawals. Additionally, WazirX’s restructuring efforts include pursuing legal proceedings in Singapore, where the company has selected the jurisdiction for its legal restructuring process.

Hence, the hacker continues to cover their tracks by moving stolen cryptocurrencies through anonymous services, while WazirX strives to restore normal operations and provide users with access to their funds.

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