TLDR:
- WazirX hacker moved 10,000 ETH ($23.3M) in 24 hours
- Half of the illicit funds headed to Tornado Cash, while the rest found a new Ethereum home
- Total laundered by hacker now 49,100 ETH ($115M)
- WazirX breach in July led to $230M theft
- In the spirit of restitution, the exchange has promised to return between 55% and 57% of the purloined funds to affected users
The notorious hacker from the WazirX crypto breach is once again in the limelight, having shifted a large chunk of the digital loot
In just a day, this digital bandit transferred 10,000 Ethereum, worth around $23.3 million, stirring up renewed attention on the probe and recovery efforts
According to Cyvers Alerts, the misappropriated funds were divided into two lots: one 5,000 ETH batch went to a specific wallet on September 9, and then another 5,000 ETH was sent to a different wallet on the next day. This pattern hints at a deliberate strategy on the hacker's part
🚨UPDATE🚨🚨 @WazirXIndia hacker just transferred 5K $ETH ($11.7M) to a new address: https://t.co/FH7yXEf3UW .
It\"s likely headed to @TornadoCash , similar to yesterday\"s activity!Keep your company off the security incident radar. Ensure your assets' safety: Schedule a demo 🚀… https://t.co/RudLtRqqPz pic.twitter.com/5wt5PSQKpA
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 10, 2024
The cumulative amount of Ethereum clandestinely moved by the WazirX hacker has hit an astounding 49,100 ETH, which translates to roughly $115 million, including 12,600 ETH transferred over the last eight days
A major point of concern is the hacker's use of Tornado Cash, a service designed to shroud blockchain addresses in anonymity. While Tornado Cash isn’t legally recognized in the States, it's a favorite among cyber miscreants for laundering ill-gotten gains. Reports suggest half of the newest batch of funds met this fate, slipping into near-anonymity
🚨 The WazirX hacker shows no signs of stopping, relentlessly laundering the pilfered cryptocurrency $ETH !
In the past 24 hours, the attacker moved 10K $ETH ($23.3M), including:
• sent another 5K $ETH to #TornadoCash
• moved another 5K $ETH transferred to fresh addresses in a bid to further obfuscate the fraudulent funds💸 Total laundered: 12.6K $ETH ($30.13M) in… https://t.co/hqIoMLq8s9 pic.twitter.com/HONUuhnqCB
— Spot On Chain (@spotonchain) September 10, 2024
The summer breach of WazirX led to over $230 million being siphoned from users' holdings in the exchange's multisig wallet
Taking the reins in the aftermath, WazirX has been tirelessly engaged in efforts to recover funds and restructure, aiming to cushion the fallout for those affected
Jason Kardachi of Kroll, head of restructuring, shared in a virtual briefing that the goal is to restitute 55-57% of the snatched funds to users
This restitution is part of a wider recovery strategy that includes launching revenue-generating initiatives and helping users in urgent need of liquidity to access their funds faster
In its quest for stability, WazirX is scouting for a 'white knight' investor and is open to partnerships to bolster its financial position. The leftover assets are planned to be distributed pro-rata, with more considerable returns for those opting to wait out the restructuring
The hacker’s recent maneuvers have thrown a wrench into the investigative wheels, making it difficult for law enforcement to trace the elusive loot, particularly with the use of sophisticated obscuring tools like Tornado Cash
These situations are unfolding amidst rising anxiety over cryptocurrency security The FBI has noted a shocking 45% jump in crypto fraud, leading to damages totalling $5.6 billion last year The spike in these criminal endeavors, driven largely by scams promising sky-high returns, highlights the perilous landscape of cryptocurrency
Blockonomi’s Editor-in-Chief, also a visionary behind UK-based Kooc Media, remains a staunch advocate of open-source software, blockchain advancements, and a free, equitable internet
