The recent hack of WazirX, which resulted in the theft of $230 million, has been a cause of concern in the cryptocurrency community. According to Arkham Intelligence on-chain data, the hacker responsible for the breach has almost finished laundering the stolen funds, with only $6 million worth of Ethereum left to be processed.
The majority of the stolen assets, including over $100 million in Shiba Inu and $52 million in Ethereum, were moved through Tornado Cash, a service known for its ability to obscure digital transactions. The hacker has been actively transferring funds through Tornado Cash since August, with a recent transfer involving 3,792 ETH, equivalent to approximately $10 million.
Tornado Cash, while not illegal in itself, has been used by criminals as a means to launder illicitly gained cryptocurrencies. Earlier this year, the developer of Tornado Cash was convicted of money laundering in the Netherlands.
In response to the hack, WazirX has entered a restructuring process in Singapore in an effort to manage its liabilities. Despite attempts to recover the stolen assets, the exchange has faced criticism for its handling of the situation and lack of transparency with its users. Additionally, former business partner Binance has clarified that it was not involved in the hack and does not control or manage WazirX operations, contradicting previous claims made by WazirX co-founder Nischal Shetty.
With the majority of the stolen funds now laundered, WazirX continues to face challenges in its recovery efforts, raising concerns about the exchange’s future and highlighting broader security issues within the cryptocurrency industry. As the situation unfolds, it is essential for investors to remain vigilant and cautious when dealing with cryptocurrency exchanges.