Hackers Make Moves to Clean $235 Million Stolen from WazirX Using Tornado Cash Protocol
WazirX, a prominent Indian cryptocurrency exchange, recently suffered a major breach resulting in the theft of $234.9 million within the Ethereum network. More than 200 various cryptocurrencies were taken, including popular tokens like Shiba Inu, Ethereum, and Tether. This attack inflicted substantial financial losses on around 41% of the platform’s users, predominantly of Indian descent.
The culprits behind this breach, suspected to be linked to the notorious Lazarus Group, are now engaged in the process of cleaning the pilfered Ethereum through the Tornado Cash protocol. Presently, they have successfully transferred $6.5 million in 16 transactions within the protocol. Tornado Cash offers a method to mask the source of funds by obliterating any traces of past transactions related to specific tokens such as Ethereum, DAI, and others.
Although the hackers have just begun the initial phase of laundering the Ethereum tokens, the potential for further deposits into Tornado Cash or other decentralized mixers exists. Notably, moving such substantial amounts of money could compromise the hackers’ anonymity. It is crucial to remain vigilant in monitoring these unfolding events.
Given the current circumstances, the chances of complete reimbursement for affected WazirX users seem bleak. Legal advisors indicate that users might face losing a minimum of 43% of their funds, with the best-case scenario for recovery estimated at 55% to 57%. The company is presently undergoing a reorganization in Singapore, where crucial decisions on compensation will be reached within the next month.
Regrettably, the recent transfers of stolen funds to Tornado Cash suggest diminishing prospects for successful asset retrieval. This not only highlights the vulnerabilities within the crypto industry but also raises apprehensions regarding legal conflicts with major players like Binance. The road ahead may present obstacles, with user well-being hanging in the balance.
