WazirX Cryptocurrency- Analyzing the Laundering Process Behind India’s Largest Crypto Hack
WazirX Cryptocurrency– Recent on-chain data reveals that the perpetrator behind India’s largest cryptocurrency hack is nearing the completion of laundering over $230 million worth of tokens. This incident has raised significant concerns in the crypto community regarding security and the efficacy of recovery efforts.
WazirX Hack: The Background
In July, WazirX, one of India’s largest cryptocurrency exchanges by trading volume, fell victim to a significant security breach. The hack involved the draining of over $100 million in Shiba Inu (SHIB) and $52 million in Ether (ETH), among other assets. The stolen funds accounted for more than 45% of the total reserves reported by the exchange in June 2024. Following the breach, WazirX filed for a restructuring process in Singapore to address its liabilities.
Laundering Operations Through Tornado Cash
Data from Arkham indicates that the hacker, who stole funds from WazirX, has moved a significant amount of the stolen assets into new wallets before transferring them to Tornado Cash. As of now, only $6 million worth of Ether remains in the wallet originally holding the stolen funds. In August alone, over $50 million worth of tokens were moved to Tornado Cash, with recent activities showing increased laundering efforts. The latest recorded transfer was 3,792 ETH (approximately $10 million) to a new wallet early Wednesday.
WazirX’s Recovery Efforts and Binance’s Clarification
WazirX has been making limited progress in recovering the stolen funds and has faced criticism for its response to the crisis, particularly in terms of user communication and recovery processes. The exchange is still dealing with the fallout from the incident, both financially and reputationally. Last week, Binance, which has had a complicated relationship with WazirX, reiterated its non-involvement in the security breach, contrasting the statements made by WazirX founder Nischal Shetty in August.
The ongoing saga serves as a stark reminder of the vulnerabilities in the cryptocurrency space and the challenges in ensuring user safety and trust.
FAQs
What happened during the WazirX cryptocurrency hack?
In July, WazirX experienced a security breach in one of its multisig wallets, resulting in the theft of over $100 million in Shiba Inu (SHIB) and $52 million in Ether (ETH), among other assets. This incident accounted for more than 45% of the exchange’s reported total reserves.
How are the stolen funds being laundered?
The hacker has been moving the stolen tokens to various new wallets before transferring them to Tornado Cash, a privacy service that allows users to exchange tokens while masking wallet addresses. Recent blockchain data indicates that over $50 million worth of tokens were moved to Tornado Cash in August, with additional transactions occurring in September.
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