Hackers responsible for the Rs 2K crore (around $234 million) WazirX cryptocurrency theft have begun laundering the stolen assets. According to blockchain security firm Cyvers, the hackers have already laundered over $12 million using Tornado Cash, a decentralized cryptocurrency mixer platform. Tornado Cash helps anonymize transactions, making it difficult to trace the stolen funds.
Laundering through Tornado Cash
Reports from Cyvers reveal that more than $12 million worth of Ethereum (ETH) has been laundered, with $2 million of that already deposited in ETH. Cyvers also noted a recent transfer of 5,000 ETH (worth $12 million) to a new address by the hacker.
Tornado Cash operates as an open-source platform, which runs on Ethereum Virtual Machine-compatible networks. It has gained notoriety for being used in laundering stolen digital assets due to its ability to obscure transaction details.
Links to Lazarus Group’s Tactics
Industry analysts have compared the WazirX hacker’s tactics to those used by the Lazarus Group, a North Korea-backed organization involved in global crypto thefts. The Lazarus Group is responsible for more than $2 billion in stolen cryptocurrencies and often uses Tornado Cash to mask its transactions.
WazirX Users Face Losses
In a recent town-hall meeting, WazirX Co-founder Nischal Shetty acknowledged that nearly 43% of the platform’s users are likely to lose their stolen digital assets. The platform, which has 4.2 million users in India, is currently undergoing a restructuring process to recover some of the lost funds.
George Gwee, a director at restructuring firm Kroll, stated that users may be able to recover between 55% and 57% of their funds under the best-case scenario.
Legal and Regulatory Implications
The case is being closely followed by legal experts, with many calling for a thorough investigation by Indian authorities. The scale of this cybercrime highlights the urgent need for effective regulations in India’s crypto industry to protect investors and national interests.
Additionally, Indian cryptocurrency exchange CoinSwitch has taken legal action against WazirX, seeking to recover funds stuck on the platform, which is run by Nischal Shetty.
