How Safe Is Your Crypto? WazirX Hacker Moves 5000 ETH Via Tornado

WazirX Hacker involved in a substantial breach of the WazirX cryptocurrency exchange in July, has moved 5000 ETH, valued at over $11 million, through Tornado Cash. This action has reignited concerns over the security measures of digital asset platforms and the methods used by crypto hackers.

WazirX Hacker Moves 5000 ETH Via Tornado

In a recent development, the WazirX Hacker has transferred a large sum of stolen cryptocurrency, specifically 5000 ETH, to a new address using the mixing service Tornado Cash. This move, clocked at 07:19 UTC on September 9, 2024, marks a significant development with the transferred ether currently valued at over $11 million.

The transaction trail, now obscured by Tornado Cash, complicates the task of tracking these digital assets. Tornado Cash is designed to enhance user privacy by mixing multiple streams of potentially identifiable cryptocurrency. While the service is legal and supports legitimate privacy needs, it is often exploited by cybercriminals to launder ill-gotten gains. 

In addition, this recent transaction forms part of a larger pattern involving significant amounts of stolen cryptos being laundered through similar platforms. In the aftermath of the attack, the WazirX platform has taken several steps to address the security lapses, including enhancing their encryption measures and cooperating with international cybersecurity firms.

Most recently, WazirX announced plans to resolve INR withdrawals within two weeks, demonstrating dedication to releasing 34% of the funds currently frozen in user accounts. However, these actions come after substantial losses, underscoring the need for more proactive security measures against crypto hacks.

The Broader Context of Crypto Hacks in September

September has seen a worrying trend in cryptocurrency security breaches, with over 20,561 ETH, amounting to approximately $49.3 million, laundered through Tornado Cash by various hacking groups. 

This spike in illicit activities using privacy-enhancing tools illustrates a broader vulnerability within the crypto space. Among these activities, the WazirX Hacker’s transactions stand out, contributing significantly to the disturbing trend of crypto hacks.

Four hackers have sent 20,561 $ETH ($49.3M) to #TornadoCash since the start of September!

Notably, among these hacker entities:
• #Penpie exploiter quickly laundered all 11,261 $ETH ($26.7M) within only 4 days of the hack.
• #WazirX exploiter still holds 54,155 $ETH ($123M),… pic.twitter.com/LNWNR4Hsvy

— Spot On Chain (@spotonchain) September 8, 2024

The Penpie exploiter also moved 11,261 ETH ($26.7 million) through Tornado Cash within just days of their initial theft. These rapid movements highlight the critical need for advanced tracking and security mechanisms within blockchain infrastructures. 

In addition WazirX hackers, following the increasing hacks, last week,  the FBI alerted Bitcoin ETF issuers and crypto companies about potential security breaches by North Korean hackers aiming to misappropriate digital assets from users.

Impact on the Crypto Market 

The repercussions of these breaches extend beyond immediate financial losses. They affect the overall market stability and investor confidence. For instance, Ethereum price has dropped over 8% in the last 7 days coinciding with these events. This market response may stifle the growth of the crypto market, which is already struggling with regulatory challenges.

Despite the setbacks, WazirX’s WRX token has seen a noticeable 3.31% increase in its price to $0.1278. The market capitalization stands at $48.8 million, with a 59.51% rise in volume reaching $798,844 over the past 24 hours. This recent activity highlights a growing trader interest, possibly driven by optimism towards the resolution of withdrawal issues.