With only $6 million in Ethereum left to be laundered, the hacker responsible for the WazirX breach has nearly finished the illicit process.
WazirX Hack: A Massive Crypto Theft
A hacker who stole $230 million from WazirX in July is close to laundering the entire amount. Based on Arkham Intelligence’s on-chain data, only $6 million worth of Ethereum (ETH) remains to be cleaned. This high-profile breach shook the Indian cryptocurrency exchange and raised new concerns about the safety of digital assets on trading platforms.
Extensive Use of Tornado Cash
The hacker moved most of the stolen assets through Tornado Cash, a decentralized service that masks transaction details. Tornado Cash has become infamous for helping criminals obscure their digital footprints. Since August, over $50 million of the stolen funds have been laundered using this service, including a recent transfer of 3,792 ETH, worth approximately $10 million. The misuse of Tornado Cash in this crime has brought attention to its growing role in crypto-related illegal activities.
Tornado Cash’s Controversial Role in Crypto Laundering
Although Tornado Cash is not illegal, criminals frequently exploit its privacy features for money laundering. Authorities have taken action against those involved in creating and maintaining this tool. Earlier this year, Tornado Cash developer Alexey Pertsev was sentenced to over five years in prison for his role in facilitating money laundering schemes. This conviction reflects increasing scrutiny of privacy-centric crypto tools and their legal implications.
WazirX’s Struggle with Post-Hack Recovery
After the WazirX hack, the exchange initiated a restructuring process in Singapore to address its financial obligations. Despite their recovery attempts, WazirX has faced sharp criticism for its crisis management and lack of transparency. The exchange’s response to the theft has left many users concerned about the future stability of the platform.
Binance Distances Itself from WazirX
Adding to the tension, Binance, which was once linked to WazirX as a business partner, made a public statement clarifying its non-involvement in the hack. Binance emphasized that it has no control or management over WazirX, contradicting earlier claims made by WazirX co-founder Nischal Shetty. This back-and-forth between the two exchanges has led to confusion and raised concerns about leadership accountability at WazirX.
The Remaining Challenges for WazirX
Although most of the stolen funds have already been laundered, the remaining $6 million in Ethereum continues to evade recovery. WazirX still faces significant challenges in rebuilding trust among users and ensuring future security. The hack has highlighted vulnerabilities within the cryptocurrency market, underscoring the need for better safeguards and more transparent exchange operations.
Future of WazirX and Crypto Security
The WazirX hack serves as a stark reminder of the risks involved in the crypto space. With most of the funds successfully laundered, questions about WazirX’s future remain. This incident highlights broader concerns about digital asset security and the role exchanges play in protecting user funds from malicious actors. Moving forward, exchanges must enhance security measures and provide more transparency to avoid similar crises.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
