Key Insights
- Hackers move $6.5 million in stolen crypto from WazirX to Tornado Cash mixer
- WazirX suffered a $230 million exploit on July 18, suspending withdrawals and trading
- The attack is believed to be linked to North Korea’s Lazarus Group
MUMBAI (MarketsXplora) – Hackers responsible for the recent $230 million exploit of Indian cryptocurrency exchange WazirX have transferred approximately $6.5 million worth of stolen Ethereum to Tornado Cash, a U.S.-sanctioned cryptocurrency mixer, cybersecurity firm PeckShield reported on Tuesday.
The movement of 2,600 ETH to Tornado Cash marks a significant development in the aftermath of the July 18 cyber attack, which targeted WazirX’s multi-signature wallet. Cryptocurrency mixers are often used by cybercriminals to obfuscate the trail of illicit funds, making it more challenging for law enforcement to track and recover stolen assets.
WazirX, one of India’s largest crypto exchanges, continues to grapple with the fallout from the attack. The platform has suspended withdrawals since the incident and halted all trading activities on July 21. The exchange reported that the hack has severely impacted its ability to maintain balanced collaterals against its assets.
As the WazirX team focuses on partial recovery efforts, sources close to the matter suggest that losses may be socialized among users. This restructuring approach could result in users not receiving the full value of their cryptocurrency holdings at the time of the attack.
Cybersecurity experts believe the sophisticated nature of the attack bears hallmarks of the North Korean Lazarus Group, a state-sponsored hacking organization notorious for high-profile crypto heists. The group was previously linked to the $600 million Ronin sidechain hack in 2022.