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CDS Crypto News WazirX Hacker Launders $10M in Ethereum Through Tornado Cash Amid Customer Withdrawal Frustrations

Crypto News

WazirX Hacker Launders $10M in Ethereum Through Tornado Cash Amid Customer Withdrawal Frustrations

WazirX hacker transfers $10M in ETH to Tornado Cash for laundering, following a $235M exploit on the exchange. Customers face limited withdrawals, raising concerns over fund access.

Zeynep Öztürk05/09/20241 Mins read52

WazirX Hacker Launders $10M in Ethereum Through Tornado Cash Amid Customer Withdrawal Frustrations

The WazirX hacker has moved 5,000 ETH to a new wallet and begun laundering the funds through Tornado Cash, a well-known cryptocurrency mixing service.

According to PeckShieldAlert, the hacker transferred approximately $12 million worth of ETH to a new address, identified as “0x2…968,” and soon after began sending the funds to Tornado Cash. This service has been accused by regulators of facilitating the laundering of over $7 billion in crypto assets since 2019.

WazirX hacker transfers $10M in ETH to Tornado Cash for laundering, following a $235M exploit on the exchange. Customers face limited withdrawals, raising concerns over fund access.

As of this writing, the exploiter has funneled 1,600 ETH (around $3.8 million) to Tornado Cash within just 30 minutes of receiving the funds in the new wallet. There remains 3,399.92 ETH (roughly $8.19 million) in the address. These funds were sent in 16 transfers, each consisting of 100 ETH.

Just two days earlier, on September 2, the attacker laundered another 2,600 ETH, valued at $6.5 million at the time, through Tornado Cash, following a similar strategy of breaking down the transfers into batches of 100 ETH across 26 transactions.

In total, the hacker has successfully laundered 4,200 ETH so far, equating to $10.11 million at current market prices.

WazirX originally lost $235 million in the July 18 attack that severely impacted the exchange, pushing the company to seek a Singapore Scheme of Arrangement—a legal restructuring process under Singapore’s insolvency laws.

At the same time, WazirX customers have expressed frustration over being able to withdraw only 66% of their funds, following the exchange’s phased withdrawal process that started on August 26. Many users believe this limited access is inadequate and have taken to social media to raise concerns, with some questioning when full cryptocurrency withdrawals will be restored.