The WazirX hacker, responsible for the July breach that saw $234 million stolen from the exchange, has transferred approximately $23 million in cryptocurrencies to Tornado Cash. On Thursday, Cyvers Alerts reported that the hacker moved 5,000 ETH, valued at around $11.7 million, to a new address, with $4.7 million being sent to Tornado Cash. Earlier in the week, Spot On Chain revealed that the hacker had transferred another 5,000 ETH, worth $11.7 million, to the mixing tool. Prior to this, Cyvers reported that the hacker had moved 2,600 ETH, valued at $6.5 million, to the same platform.
Following the July hack, Lookonchain reported that the hacker had converted most of the stolen assets into ether (ETH). As of Thursday, the hacker’s wallet held $95.3 million in cryptocurrency, with $92.3 million in ETH. The exact method of the hack is still under investigation, but early analysis from blockchain firm Elliptic suggests possible involvement of North Korean-linked hackers. The hacker’s use of Tornado Cash to obscure the stolen crypto trail indicates a deliberate attempt to break the link between the sender and receiver in cryptocurrency transactions. By using Tornado Cash, the hacker can hide the stolen asset trail, making it harder to trace their origin or destination and avoid detection and legal consequences. Despite its controversial standing, especially after US Treasury sanctions, Tornado Cash remains operational in many regions.
It is worth noting that the person behind the Poloniex exchange heist, which stole over $100 million, transferred $76 million to Tornado Cash earlier this year. The use of Tornado Cash by high-profile hackers and individuals involved in major cryptocurrency heists raises concerns about the platform’s role in facilitating money laundering and illegal activities. The recent actions of the WazirX hacker in transferring stolen funds to Tornado Cash highlight the challenges faced by authorities in investigating and prosecuting cryptocurrency-related crimes, particularly when privacy-enhancing tools like Tornado Cash are used to obfuscate transaction trails. Despite regulatory scrutiny and sanctions, Tornado Cash remains operational and continues to be utilized by individuals seeking to conceal the flow of illicit funds in the cryptocurrency space.
The prevalence of cryptocurrency hacks and thefts underscores the need for enhanced security measures and regulatory oversight in the digital asset ecosystem. As the popularity of cryptocurrencies continues to grow, so too does the threat of malicious actors seeking to exploit vulnerabilities in exchanges and wallets. In response to the rising number of cyber attacks targeting cryptocurrency platforms, industry participants and regulators must collaborate to develop robust security protocols and enforcement mechanisms to safeguard user funds and maintain the integrity of the market. By addressing these challenges proactively, the crypto community can mitigate risks and foster a safer and more resilient financial infrastructure for digital assets.
Overall, the ongoing saga of the WazirX hacker and their use of Tornado Cash to obscure stolen crypto funds highlights the intricate dynamics at play in the cryptocurrency space. As regulators and law enforcement agencies grapple with the evolving nature of financial crimes in the digital realm, the need for greater transparency, accountability, and cooperation across stakeholders becomes increasingly critical. By staying vigilant and proactive in addressing security threats and illicit activities, the crypto industry can strengthen its resilience and credibility, paving the way for sustainable growth and innovation in the emerging digital economy.
