The perpetrators behind WazirX’s recent hack of July 18 have transferred a significant portion of their stolen funds. Blockchain security firm PeckShield has announced that it has identified an address linked to the hackers, which has recently sent 2600.1 ETH [worth approximately $6.5 million] to the privacy protocol Tornado Cash.
This latest transaction hints at efforts to launder the stolen funds. Tornado Cash, a popular privacy mixer, allows users to hide the origin and destination of their transactions. By using this platform, the hackers are making it more difficult to trace the stolen funds.
As the investigation into the WazirX hack continues, authorities and security experts are working tirelessly to track down the perpetrators and recover the stolen funds. The transfer of funds to Tornado Cash further complicates the situation, but it is hoped that law enforcement agencies will be able to use advanced techniques to trace the stolen funds and bring the hackers to justice.
In July, the leading Indian crypto exchange suffered a security breach in one of its multisig wallets, losing over $230 million [2000 crore INR] in the onslaught. on-chain sleuth ZachXBT has submitted evidence of a KYC-linked deposit address used by the exploiter to receive funds from the WazirX exploit. The hackers orchestrated a methodical and organized attack that lasted a total of 8 days.
WazirX’s Phased Withdrawals
The incident was a major blow to the Indian cryptocurrency community, raising serious questions about the security of cryptocurrency exchanges and the need for stronger measures to protect user funds.
Not only that, the event hugely disrupted the platform’s operations, mandating a temporary freeze in withdrawals and traders’ activities as WazirX works on gaining situational awareness and recovery strategies. After careful evaluation, the company announced that INR withdrawals resumed on August 26, 2024.
This phased approach will begin with the capability to withdraw half of the 66% limit from August 26 to September 8, 2024, and then the full limit from September 9 to September 22, 2024. To facilitate this, withdrawal fees will be reduced by 60%, from INR 25 to INR 10.
