B2C WazirX Crypto Heist: The Implications of $6.5 Mn Ether Movement Into Tornado Cash
B2C WazirX Crypto Heist: An Urgent Overview
Investors are on tenterhooks as hackers connected to the WazirX breach have begun moving significant amounts of virtual assets. According to blockchain security firm PeckShield, approximately 2,600.1 ether (ETH) worth around $6.5 Mn were transferred in 26 transactions from a wallet linked to the July incident using a Tornado Cash router. Tornado Cash enables users to exchange tokens while *obscuring* their wallet addresses, effectively cleaning the trail of funds.
Current Developments
Although the US government banned the platform in 2022, it continues to operate in various jurisdictions. Etherscan data revealed that these transactions started on September 2—the same day WazirX cofounder Nischal Shetty held a critical town hall meeting regarding the exchange's restructuring plans.
- WazirX is under intense scrutiny after a cyberattack allegedly by North Korean hackers drained nearly $235 Mn in crypto assets.
- The platform has halted withdrawals and trading, with plans to restore them partially by allowing users to withdraw 66% of their INR balances.
- It is estimated that users may recover only about 55-57% of their trapped funds post-restructuring.
As uncertainty looms, the hacked crypto exchange faces potential legal actions from partners like CoinSwitch and mounting pressure from frustrated customers seeking answers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.