WazirX Hackers Transfer 2600 ETH ($6.5 Million) via Tornado Cash, Making Recovery of Stolen Crypto Harder

• WazirX hackers transferred $6.5 million through Tornado Cash in 26 transactions, further obscuring their digital trail.
• The July 18, 2024, WazirX hack resulted in a $230 million loss, with withdrawals and trading still paused.
• Experts link the WazirX hack to the North Korean Lazarus Group, known for high-profile cryptocurrency thefts.

The hackers behind the WazirX security breach have taken further steps to conceal their activities. They recently transferred 2,600 ETH, valued at $6.5 million, to the cryptocurrency mixer Tornado Cash. This move makes it more challenging for authorities to trace and recover the stolen assets, according to a report by security firm PeckShield.

Hackers Move $6.5 Million through Tornado Cash

PeckShield, a leading security firm, reported that the hackers executed 26 transactions of 100 ETH each, funneling the stolen funds through Tornado Cash. The mixer, which has been sanctioned by the U.S., is frequently used by cybercriminals to launder stolen crypto. By sending funds through Tornado Cash, the hackers aim to obscure the digital trail, making it increasingly difficult for investigators to trace the transactions back to their original source.

Details of the WazirX Exploit

On July 18, 2024, WazirX, a leading cryptocurrency exchange in India, suffered a severe security breach. The hackers targeted the platform’s multi-signature wallet, leading to the theft of over $230 million in cryptocurrency assets. The platform has been in crisis mode since the attack, freezing withdrawals and pausing trading on July 21. According to reports, WazirX is currently undergoing restructuring efforts, with some users potentially losing a portion of their holdings due to the attack.

Ties to the North Korean Lazarus Group

Security experts have linked this hack to the Lazarus Group, a notorious state-sponsored hacking organization based in North Korea. The group has been implicated in several high-profile cyberattacks, including a $600 million exploit on the Ronin sidechain in 2022. In response to the WazirX breach, the exchange has sought legal relief from the Singapore High Court, as users demand compensation for the massive losses.

The hacker’s use of Tornado Cash further complicates efforts to recover the stolen funds. It is a well-known tactic to make the trail harder to follow, making the recovery of assets a challenging process for authorities.