- WazirX hacker sends $6.5M ETH to Tornado Cash as the second phase of INR withdrawals starts
- The hack on July 18 led to a $230M theft, causing halted trading and frozen withdrawals.
- WazirX is battling legal issues and ongoing investigations.
The WazirX hacker has moved $6.5 million worth of stolen Ethereum (ETH) to Tornado Cash.
This transfer comes as WazirX, the Indian cryptocurrency exchange that got hacked in July 2024, begins the second phase of Indian rupee (INR) withdrawals.
INR Withdrawals Phase 2 Starts Early!
Starting today, all eligible users can now withdraw up to the full 66% limit of their INR balances.
Originally scheduled for 9th September, we’ve moved this up to provide quicker access. Thank you for your continued patience and support… pic.twitter.com/6I3BA220b2
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) September 3, 2024
The first phase of partial INR withdrawals started on August 26 and was initially scheduled to run until September 8.
WazirX hacker has moved 2.6K ETH through Tornado Cash
Blockchain security firm Cyvers reported that the hacker responsible for the WazirX breach has transferred 2,600 ETH, worth approximately $6.5 million, through Tornado Cash.
ALERTThe @WazirXIndia hacker has begun transferring stolen funds to @TornadoCash at https://t.co/bXF5gBKvxj
The incident, which was revealed by the @Cyvers_ system on July 18, 2024, resulted in a $235M loss.
So far, the attacker has moved 2,600 $ETH $6.5M to Tornado Cash!… https://t.co/egLcmhaYYb pic.twitter.com/jIlx9RND2y
— Cyvers Alerts (@CyversAlerts) September 2, 2024
Tornado Cash, which has been sanctioned by the US government, is known for its role in obfuscating the origins of digital assets, making it difficult for law enforcement to trace and recover stolen funds. The hacker’s move underscores the sophisticated tactics employed by cybercriminals to evade detection.
The WazirX hack, which took place on July 18, 2024, led to the theft of over $230 million from the exchange’s multi-signature wallet. The breach significantly impacted WazirX’s operational stability, affecting its ability to maintain collateral against its assets.
Following the attack, withdrawals were frozen, and trading was halted, with the exchange focusing on a partial recovery. Reports indicate that the losses may be socialized among users, potentially resulting in some not receiving the full value of their cryptocurrency holdings.
WazirX’s efforts to restore operations
Originally, the second phase of INR withdrawals that started today, allowing users to withdraw up to 66% of their INR balances, was scheduled to open on September 9, but the exchange decided to move it forward to provide users with access to their funds sooner.
This decision comes as part of a staggered plan to restore financial operations following the massive hack.
WazirX has also been engaged in legal proceedings in Singapore as part of its restructuring efforts. The exchange’s approach includes working with law enforcement agencies to address the fallout from the attack and to seek justice.
Despite seeking a 30-day moratorium from Singapore’s High Court to restructure its operations and address user withdrawals, the exchange has been sued by CoinSwitch for $9.7M.
The company has faced challenges in fully reinstating INR withdrawals due to ongoing investigations, with a portion of rupee-denominated balances still being inaccessible as of late August.
As the situation evolves, both the stolen funds’ recovery and the broader impact on WazirX’s users remain critical concerns.
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