WazirX, one of India’s largest crypto exchanges, has been shaken once again as the hacker responsible for stealing over $235 million has moved $6.5 million worth of funds through the sanctioned crypto mixer, Tornado Cash. According to blockchain security platform Cyvers, the hacker executed 26 separate transfers of 100 ETH each, within just one hour, effectively laundering the stolen crypto. This development took place on September 2 and 3.
The hacker’s wallet, initially holding $6.7 million, now retains only $154,000, as observed by DeBank, a crypto tracking platform. The swift movements have raised concerns within the crypto community, particularly regarding the effectiveness of sanctions on Tornado Cash.
In a bid to maintain user trust, WazirX announced that it has expedited the withdrawal process for Indian Rupee (INR) balances. Starting September 3, users can withdraw up to 66% of their INR balances, one week ahead of the previously scheduled date. This move comes as part of a staggered plan aimed at restoring normal financial operations following the devastating exploit on July 18.
However, WazirX has disclosed that 34% of INR-denominated balances remain frozen due to ongoing investigations, emphasizing that legal complexities surrounding crypto withdrawals persist. The exchange is also pursuing legal restructuring in Singapore to safeguard its operations during this turbulent period.
WazirX’s proactive measures reflect its commitment to restoring user confidence amid ongoing legal and financial challenges. The situation continues to evolve as authorities investigate the ramifications of the massive exploit and the hacker’s latest laundering attempts.
