The hackers behind the Rs 2,000 crore (approximately $234 million) heist of digital assets from the WazirX cryptocurrency exchange have begun withdrawing the stolen funds, with more than $12 million already laundered through the controversial platform Tornado Cash.
Blockchain security firm Cyvers reported that the hackers have been using Ethereum (ETH) to move the stolen assets, with large sums already funneled through Tornado Cash, a platform known for providing anonymity in cryptocurrency transactions.
Over $12 Million in ETH Laundered
According to Cyvers, the hackers have already laundered over $12 million through Tornado Cash. This includes deposits of about $2 million in Ethereum (ETH), raising concerns about the scale of laundering efforts.
Cyvers posted the update on the microblogging platform X (formerly Twitter), revealing that the WazirX hackers had just transferred 5,000 ETH, valued at $12 million, to a new wallet address. “@WazirXIndia hacker just transferred 5,000 ETH worth $12 million to a new address,” Cyvers tweeted, confirming the use of Tornado Cash for laundering the funds.
Tornado Cash: A Hub for Crypto Laundering?
Tornado Cash is a popular decentralized platform that allows users to obscure the origins and destinations of their cryptocurrency transactions. While the platform is widely used to maintain privacy, it has increasingly become associated with illicit activities like money laundering, particularly after high-profile hacks and thefts in the crypto space.
By splitting up stolen funds into smaller, seemingly unrelated amounts and funneling them through Tornado Cash, hackers can make it difficult for investigators to trace the movement of assets and recover stolen funds. In the case of the WazirX hack, this laundering technique has already complicated efforts to track the stolen Ethereum.
The Rs 2,000 Crore WazirX Hack
The WazirX hack, which saw digital assets worth Rs 2,000 crore (around $234 million) stolen from the Indian cryptocurrency exchange, is one of the largest crypto thefts in recent memory. The exact details of the breach are still being investigated, but it has rocked the Indian crypto community and raised serious concerns about security vulnerabilities in even well-established exchanges.
The hackers have been methodically moving the stolen funds in large quantities, with the initial laundering efforts focusing on Ethereum. Experts believe the hackers may continue to use Tornado Cash or other mixing services to further obscure the trail of the funds.
Challenges for Law Enforcement
The use of Tornado Cash presents significant challenges for law enforcement agencies trying to trace stolen assets. While blockchain technology is inherently transparent, platforms like Tornado Cash can break up the transaction trail, making it nearly impossible to follow where funds are ultimately sent.
Regulators and blockchain security firms are now working to identify patterns and addresses associated with the hackers. However, the decentralized nature of Tornado Cash complicates these efforts, as the platform operates without a central authority that could shut down or restrict its use.
What’s Next for WazirX and the Crypto Community?
The WazirX hack is yet another reminder of the growing security risks in the crypto industry. As exchanges become larger and hold more valuable assets, they are increasingly becoming prime targets for cybercriminals. The fallout from the theft is likely to intensify calls for stricter regulations and better security protocols to protect users’ funds.
Meanwhile, law enforcement and blockchain security firms will continue to track the movement of the laundered Ethereum, hoping to intercept and recover some of the stolen assets. However, with $12 million already laundered, the path to recovery is becoming more difficult as each day passes.
For WazirX, the challenge now is rebuilding trust with its users and tightening its security measures to prevent such incidents in the future. As the investigation into the Rs 2,000 crore theft continues, the crypto community will be watching closely for updates and further developments.
