CDS Crypto News WazirX Hack Fallout: $11 Million in Stolen Ether (ETH) Laundered Through Tornado Cash
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WazirX Hack Fallout: $11 Million in Stolen Ether (ETH) Laundered Through Tornado Cash

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Wazirx Hack Fallout: $11 Million In Stolen Ether (Eth) Laundered Through Tornado Cash

WazirX Hack- Stolen $11 Million in Ether (ETH) Routed Through Tornado Cash: North Korean Hackers’ Latest Moves

WazirX Hack– In a significant development related to one of India’s largest crypto hacks, North Korean hackers have transferred $11 million in stolen ether (ETH) to the mixing service Tornado Cash. This move is part of an ongoing effort to obscure the origins of the stolen funds.

Details of the Latest Transfer

On early Monday, over 5,000 ETH—equivalent to just over $11 million at current prices—was moved from the address associated with July’s attack on crypto exchange WazirX to a new wallet address. This transfer was tracked by Arkham, a blockchain analytics firm. Subsequently, $1.2 million in various tokens from this new address was sent to Tornado Cash through five separate transactions.

Role of Tornado Cash in Laundering Funds

Tornado Cash is a mixing service that allows users to exchange tokens while concealing wallet addresses across multiple blockchains. Although Tornado Cash itself is not illegal, it is frequently used by criminals to obfuscate the trail of stolen funds, making it harder to trace their origin and destination.

Previous Transfers and Current Holdings

This recent $11 million transfer follows a $4 million move reported last week. The primary address used by the hackers now holds over $107 million in various tokens, with the majority being ether valued at approximately $100 million. This suggests a well-orchestrated laundering operation designed to further distance the stolen funds from their original source.

Wazirx Hack Fallout: $11 Million In Stolen Ether (Eth) Laundered Through Tornado Cash
Arkham

Impact of the WazirX Hack

The WazirX exchange, which suffered a security breach in July, was significantly impacted by the hack. The breach involved a multisig wallet compromise, leading to the theft of over $100 million in shiba inu (SHIB) and $52 million in ether, among other assets. The stolen funds represent more than 45% of WazirX’s total reserves as reported in June 2024.

Exchange’s Response and Restructuring

In response to the massive theft, WazirX has filed for a restructuring process aimed at addressing its financial liabilities. This move is part of the exchange’s efforts to recover from the substantial financial damage caused by the hack and to stabilize its operations moving forward.

FAQs

What recent action was taken by North Korean hackers involving stolen ether (ETH)?

On early Monday, North Korean hackers moved $11 million worth of stolen ether (ETH) to a new wallet address. Subsequently, $1.2 million of these funds were transferred to Tornado Cash through five different transactions.

What is Tornado Cash, and why is it significant in this context?

Tornado Cash is a mixing service that allows users to exchange tokens while hiding wallet addresses across various blockchains. It is significant because it is commonly used by criminals to launder stolen funds and obscure their origins, making it difficult for authorities to trace the stolen assets.

Wazirx Hack Fallout: $11 Million In Stolen Ether (Eth) Laundered Through Tornado Cash

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