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Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Sep 26, 2024 05:17 UTC
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WazirX Hack Update: Tornado Cash Used for Laundering $230M!
The hacker who stole $230 million from WazirX in July is nearly finished laundering the stolen funds through Tornado Cash.
Despite its legal status, Tornado Cash has been linked to criminal activity.
The hack has damaged WazirX's reputation and financial stability. The exchange is still working to recover and has faced criticism for its handling of the crisis.
The hacker behind the WazirX breach in July, which led to the theft of $230 million in cryptocurrency, is close to finishing laundering the stolen funds. Current reports indicate that only $6 million worth of Ether (ETH) remains unlaundered, with most of the assets already processed through Tornado Cash, a service that helps hide wallet addresses on the blockchain.
Is it time for all of us to open our eyes to the horrors? Read on.
Tornado Cash in the Spotlight
Data shows that the bulk of laundering activity took place in August and September, with the most recent transaction involving 3,792 ETH (around $10 million) this week. Tornado Cash, while legal in some cases, has come under fire for being used in illegal activities.
In May, Alexey Pertsev, one of the developers behind Tornado Cash, was convicted of money laundering and sentenced to 64 months in prison. The WazirX hack has only heightened concerns over the role of Tornado Cash in helping criminals hide stolen funds.
No Relief for WazirX?!
The hack impacted over 45% of WazirX’s reserves, causing both financial and reputational damage to India’s largest cryptocurrency exchange. Despite efforts to recover the stolen funds, WazirX has been criticized for its handling of the crisis, including its communication with users and the process for offering compensation.
The exchange has since started restructuring in Singapore, but full recovery remains uncertain.
Stirring the Controversy Pot
Just yesterday, an Indian YouTuber and crypto influencer, Aditya Singh, released a thread of tweets stating that the Wazirx team is misleading the hacked percentage of funds. From his research, he believes that 42% of funds were lost and not 45% as claimed by the team which further puts Wazirx in the radar and doubts.
As the hacker nears the completion of laundering the stolen assets, WazirX is still dealing with the fallout from one of the largest crypto heists in India. While recovery efforts continue, the exchange remains under close watch from both users and industry experts.
The time is now for stricter regulations and improved security measures to protect investors.
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