WazirX Hacker has moved over Rs 1400 crore in 2 months

Major Fund Movement After WazirX Hack

Less than two months after the ₹2000 crore WazirX hack, the alleged hacker has transferred ₹1400 crore worth of cryptocurrencies to various addresses for laundering purposes, reducing the likelihood of fund recovery.

On July 18, 2024, WazirX experienced a significant security breach involving a multi-sig wallet. The attacker stole various digital assets, including 5.4 trillion SHIBA INU (SHIB) tokens, 15,298 Ethereum (ETH), 20.5 million MATIC, and smaller amounts of GALA and PEPE.

Since then, the hacker has moved approximately ₹1456.89 crores from primary wallets to other addresses and through the Tornado Cash crypto mixing protocol. According to Arkham Intelligence, the hacker currently holds around $60 million of stolen assets (₹502 crores).

Post-Hack Fund Movement

Immediately following the breach, the hacker moved over $102 million in SHIB, $52.5 million in ETH, and $11.24 million in MATIC. They also transferred significant sums of PEPE and GALA to different addresses.

The hacker utilized Tornado Cash, a crypto mixer that conceals transactions, to launder the stolen funds. They liquidated portions of the assets, including 200 billion SHIB tokens, within days of the hack.

Investigation and Response

This incident emphasizes the importance of robust security measures for exchanges handling large amounts of user assets. The hacker's ability to exploit WazirX's multi-sig wallet and launder funds through Tornado Cash highlights the vulnerabilities in existing security protocols. Crypto exchanges worldwide need to reassess their defenses against such sophisticated exploits.