WazirX, the hacker behind WazirX recently washed $11,000,000 worth of Ether via Tornado Cash. This brings the laundered loot up to approximately 20,000 ETH.
Cyvers data shows that the hacker responsible for WazirX moved 5001 ETH into a new wallet in September.
The transaction took place at 0653 UTC. After that, the funds were transferred to cryptocurrency mixer Tornado Cash.
Tornado Cash, for those who are unaware, is a platform designed to enhance privacy. It allows users to mix cryptocurrency transactions with other currencies, making them difficult to track.
The WazirX hacker, for example, has been known to use this platform to hide stolen cryptocurrency.
This case involved the laundering of 5,000 ETH, which is worth approximately $11,000,000, through 50 transactions each of 100 ETH. The same moves were made previously, when the perpetrator transferred similar amounts to other wallets, before routing the Tornado Cash.
The hacker is estimated to have laundered 20,000 ETH. There are approximately 23,796 ETH left in the wallet that was linked to the attack. According to current market prices, the hoard is valued at upwards of $50 million.
WazirX’s Blame Game
WazirX suffered a loss of over $230,000,000 in different cryptocurrencies, including over 15,000 Ethereums and other crypto currencies.
The hacker was able to collect over 43,800 Ethereum through multiple transactions.
This attack resulted in the complete shut down of services, as it affected over 45% of customer funds.
While panicked users could not withdraw funds from their accounts, the community was enraged.
In its initial post-mortem, WazirX pointed out that there was a “disagreement between the displayed data” on Liminal’s interface, which is its cryptocurrency custody provider.
Liminal denied all involvement and stated that their infrastructure was not compromised.
WazirX conducted a forensics analysis via Mandiant Solutions (a Google subsidiary) which did not find any evidence that the laptops were compromised.
Liminal then commissioned a Grant Thornton independent audit, which proved that the incident occurred outside Liminal’s system.
Liminal confirmed that both its frontend and the backend of their infrastructure was secure. They also pointed out that WazirX systems could be vulnerable, but clarified that multi-signature wallets ensure that all transactions come from clients’ side.
WazirX, in the aftermath, applied for a Moratorium at Singapore’s High Court, hoping to restructure their liabilities.
In the filing to the court, WazirX management stated that Binance, the crypto exchange with which it is involved in a dispute over ownership, may be responsible for any losses suffered by WazirX clients.
Binance responded by posting a clarification of the matter on September 17, claiming to be disassociated from the incident and accusing WazirX management for misleading their users about the relationship between WazirX and Binance.
The post WazirX Hacker Launders 20,000 ETH through Tornado Cash and $11M WazirX Hacker may change as new information unfolds.
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