WazirX Hackers Transfer $12M in ETH, Laundering via Tornado Cash

• WazirX hackers transferred 5,000 ETH ($12M) after a $230M breach.
• $4M in ETH was funneled into Tornado Cash to mask transaction trails.
• Affected customers may recover 55-57% of lost assets after the exchange’s restructuring.

Hackers responsible for the $230 million WazirX breach have transferred 5,000 ETH, worth roughly $12 million, to a new address, according to blockchain security firm Cyvers Alerts. The transfer follows the exchange breach in July, with hackers initiating significant movements of stolen funds early Tuesday morning.

Hackers Move Stolen Funds Through Tornado Cash

Arkham Intelligence data reveals the hackers conducted 16 transactions into a Tornado Cash router, totaling nearly $4 million worth of ETH. Tornado Cash is a service known for obscuring transaction trails on blockchain networks, often used by malicious actors to conceal the movement of stolen assets.

WazirX’s breach affected its multisig wallet, resulting in the loss of $100 million in Shiba Inu tokens (SHIB) and $52 million in ETH. The stolen funds accounted for roughly 45% of the exchange’s reserves.

The WazirX’s hack has been linked to the infamous North Korea Lazarus Group, accused of laundering over $1 billion in stolen cryptocurrency, often through Tornado Cash, before U.S. sanctions were imposed on the service in 2022.

In response to the theft, the exchange has begun restructuring to address its financial obligations. However, Wazir’s legal representatives have indicated that affected customers may not receive full compensation in cryptocurrency. The most optimistic projections suggested a 55% to 57% chance of recovery of their assets.

Read also: WazirX Schedules Townhall To Discuss Proposed Restructuring

WazirX continues to face scrutiny from its user base following the security breach. CEO Nischal Shetty reassured users via his X account, requesting additional time for the platform to diligently work on solutions. The exchange has also sought assistance from its former partner, Binance, in compensating customers affected by the attack.