Wazirx hacker Mixes and launders $10 million through Tornado Cash
The hacker behind the $235 million theft from Indian crypto exchange WazirX has funneled approximately $10 million through Tornado Cash, a mixer known for obfuscating cryptocurrency transactions, according to a report from blockchain security firm Cyvers. The illicit transfers, which took place over the past 24 hours, were confirmed on September 5. The hacker reportedly laundered $10 million in Ethereum (ETH) through Tornado Cash, including deposits totaling around $2 million.
Cyvers also highlighted that the hacker moved around 5,000 ETH (worth $12 million) to a new wallet address, “0x2…968.” Analysts have pointed out that the hacker’s laundering methods closely resemble those used by the North Korea-backed Lazarus Group, a notorious organization allegedly responsible for over $2 billion in crypto thefts. The Lazarus Group is known for using Tornado Cash to hide their transactions as part of a complex laundering strategy, often involving chain-hopping across multiple cryptocurrencies.
WazirX Update
While the hacker continues to launder funds, WazirX has initiated an early withdrawal window for users to access 66% of their Indian Rupee (INR) balances. Originally scheduled for September 9, the exchange moved the date up to allow faster access to funds. Nischal Shetty, co-founder of WazirX, commented on the early release, stating:
“Phase 2 of INR withdrawals is live ahead of schedule. We’re working tirelessly to deliver even faster results. Our goal is to stay ahead of the timelines we share, and we will strive to make it happen.”
Despite the partial withdrawal access, many users remain frustrated, questioning when full crypto withdrawals will resume. WazirX’s legal team has suggested that users might only recover 55% to 57% of their crypto holdings. Meanwhile, the exchange has filed for restructuring in Singapore in an effort to address its liabilities.
