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In a new development in the WazirX crypto hacking, the alleged WazirX hacker moved another 5001 ETH worth Rs 96.86 crore, to a new address on September 9, to launder it through the Tornado Cash Mixer. This was amid fresh commitments by WazirX to use Rs 100 crore of user funds to fight cases at the courts.
The hacker has already started laundering the fresh lot of 5001 ETH in small quantities, having made four transfers of 100 ETH each since Monday afternoon. This is a follow-up to yet another recent move of 7600 ETH worth Rs 147 crore, which was laundered between September 2 and September 7 through similar small transfers using Tornado Cash.
Tornado Cash is considered a popular cryptocurrency tumbler service, which uses the process of breaking the links in the chain of transfers to render the transactions anonymous, helping the illicit proceeds to avoid detection.
It all started on July 18, when hackers reportedly hacked WazirX's multi-signature wallet and took away about US$234 million amounting to Rs 2000 crores of cryptocurrencies. The funds soon after that moved into several addresses, marking a big blow to the exchange's operations.
WazirX has since been fighting the aftermath, freezing all withdrawals on its platform, while seeking a moratorium from the High Court in Singapore. The exchange is getting increasing protests from its users who are demanding a criminal investigation of its management over the hacking incident.
This laundering activity has gone on as WazirX users continue to protest the suspension of withdrawals and cry out for transparency from its management. WazirX attempted to reassure users that it is determined to sort out the ongoing legal battle, but it failed to reassure the resumption timeline for full services. Meanwhile, it is not certain how much of the stolen money would come back.
