WazirX hackers transfer $6.5 million in ETH to Tornado Cash as second phase of INR withdrawals begins. The July 18 hack resulted in $230 million being stolen, leading to trading halts and withdrawal freezes. WazirX is dealing with legal issues and an ongoing investigation.
WazirX hackers transferred $6.5 million worth of stolen Ethereum (ETH) to Tornado Cash.
The transfer comes as Indian cryptocurrency exchange WazirX, which was hacked in July 2024, launches the second phase of Indian rupee (INR) withdrawals.
📢 INR Withdrawal Phase 2 Begins Soon!
Starting today, all eligible users can now withdraw up to a maximum limit of 66% of their INR balance.
It was originally scheduled for September 9th, but we have brought it forward to allow for earlier access. Thank you for your continued understanding and cooperation… pic.twitter.com/6I3BA220b2
— WazirX: Indian Bitcoin Exchange (@WazirXIndia) September 3, 2024
The first phase of partial withdrawal of Indian rupees began on August 26 and was initially scheduled to run till September 8.
WazirX Hackers Move 2.6K ETH Through Tornado Cash
Blockchain security firm Cybers reported that the hackers responsible for the WazirX breach transferred 2,600 ETH (worth roughly $6.5 million) through Tornado Cash.
🚨WARNING🚨@WazirXIndia hackers have started transferring stolen funds to @TornadoCash https://t.co/bXF5gBKvxj
The incident, revealed by @Cyvers_systems on July 18, 2024, resulted in losses of $235 million.
So far, the attackers have moved 2,600 ETH, or $6.5 million, into Tornado Cash. … https://t.co/egLcmhaYYb pic.twitter.com/jIlx9RND2y
— 🚨Cyvers Alerts 🚨 (@CyversAlerts) September 2, 2024
Tornado Cash, which has been sanctioned by the U.S. government, is known for obfuscating the origins of digital assets, making it difficult for law enforcement to trace and recover stolen funds. The hackers' actions highlight the sophisticated tactics cybercriminals use to avoid detection.
The WazirX hack, which occurred on July 18, 2024, resulted in the theft of over $230 million from the exchange's multi-signature wallets. The breach had a significant impact on WazirX's operational stability and affected its ability to maintain collateral against its assets.
Following the attack, withdrawals were frozen, trading was halted and the exchange is focusing on a partial recovery, with reports saying losses may be shared among users, some of whom may not receive the full value of their cryptocurrency holdings.
WazirX’s efforts to restore operations
Initially, the second phase of INR withdrawals, which launched today and allows users to withdraw up to 66% of their INR balances, was scheduled to begin on September 9, but the exchange decided to bring this forward to allow users to access their funds sooner.
The decision was made as part of a phased restoration plan for financial operations following the massive hack.
WazirX has also filed a lawsuit in Singapore as part of its restructuring efforts, which include working with law enforcement to address the impact of the attack and seek justice.
The exchange sought a 30-day stay in Singapore’s High Court to allow it to restructure its operations and deal with user withdrawals, but was sued for $9.7 million by CoinSwitch.
The company faces challenges in fully resuming withdrawals of Indian rupees as the investigation is ongoing, with some rupee-denominated balances still inaccessible as of late August.
As the situation evolves, both the recovery of the stolen funds and the wider impact on WazirX users remain major concerns.
