WazirX Exploiter Moves $11.6M in ETH Through Tornado Cash

WazirX Exploiter Moves $11.6M ETH to Tornado Cash: Let's Explore

The hacker responsible for the July WazirX hack, which saw over $230 million worth of assets stolen, continues to move large amounts of Ethereum through various wallets. Recent reports reveal that the exploiter has transferred 5,001 ETH to a new wallet, which has since been used to launder the funds through Tornado Cash, a popular crypto mixer. This process, where the hacker moves 100 ETH batches (worth approximately $232,000 each), has already resulted in 3,600 ETH being laundered.

WazirX Exploiter Laundering Pattern Remains Consistent

Blockchain security firm Cyvers confirmed that the transfer occurred today at 06:53 UTC, and on-chain data shows the newly created wallet immediately began routing the funds through Tornado Cash. This pattern follows the same behavior seen in earlier movements by the exploiter, who has sent 5,001 ETH to different addresses since September 12, using Tornado Cash to obscure the stolen assets' trail. So far, a total of 20,004 ETH has been laundered in this manner.

Ongoing Laundering Raises Concerns

As of now, the laundering is still ongoing, with the hacker having an estimated 2,601 ETH left to move from the latest wallet. This follows a previous transfer on September 5, when another primary wallet tied to the exploiter was identified laundering 5,000 ETH in a similar fashion. The hacker’s methodical approach suggests they are focused on avoiding detection while attempting to move large portions of the stolen funds.

Investigations and Speculation Around Insider Involvement

The WazirX hack has raised many questions regarding the exchange’s security. Initially, WazirX blamed the hack on a vulnerability from its custody provider, Liminal Custody. However, Liminal denied responsibility, and an audit from Grant Thornton found that the exploit occurred outside their systems. Some on-chain data and reports filed with police in Delhi have led to speculation of possible insider involvement. Meanwhile, WazirX users are still seeking justice and a resolution as the laundering scheme continues.

Also read: WazirX and Liminal Custody Clash Over Rs 2000 Crore Hack