WazirX Hacker Funnels $6.5 Million in ETH to Tornado Cash Amid Investor Tensions

The WazirX hacker moved $6.5 million worth of Ethereum (ETH) through Tornado Cash in 26 transactions, each transferring 100 ETH.
WazirX is seeking a six-month moratorium to restructure its liabilities following a $230 million exploit on July 18.

The hacker responsible for the WazirX breach has moved $6.5 million worth of Ethereum (ETH) through Tornado Cash, heightening concerns among investors. According to Arkham Intelligence, the hacker conducted 26 transactions, each transferring 100 ETH to the sanctioned mixer. The transfers commenced just hours after WazirX’s first town hall meeting regarding its moratorium application.

On July 18, WazirX, an Indian crypto exchange, suffered a $230 million exploit, marking one of the largest crypto thefts in India's history. In response, WazirX has limited users' Indian rupee withdrawals by 66% and has taken legal steps to address the crisis, filing an affidavit with the High Court of Singapore. The exchange is seeking a six-month moratorium to allow its holding company, Zettai, to restructure its liabilities.

Blockchain security firm PeckShield reported that early Tuesday morning, the hacker transferred 2,600 ETH, valued at $6.5 million, to Tornado Cash.

#PeckShieldAlert #WazirX Exploiter -labeled address has transferred 2600.1 $ETH (worth ~$6.5M) to #Tornadocash within the last 9 hours
On July 18, India's #CEX WazirX suffered a major security breach, resulting in the theft of over $230 million in cryptos. pic.twitter.com/0QeKkleUyb
— PeckShieldAlert (@PeckShieldAlert) September 3, 2024

The U.S. Treasury Department sanctioned Tornado Cash in August 2022, citing its use in laundering over $7 billion in virtual currency since its inception in 2019. Despite its U.S. ban, the platform remains operational in various jurisdictions, including North Korea.

During the town hall meeting, Jason Karachi, Managing Director at Kroll, commented,

“It’s highly unlikely there can be a recovery in crypto terms, at 100%. The present numbers indicate a range of 52%-57% in crypto terms.”

Investors voiced their dissatisfaction with the session, noting a lack of new information. Trading on WazirX will resume once creditors approve the restructuring proposal and the court sanctions it.

Edited by Harshajit Sarmah