WazirX Exploiter Laundering Money via Tornado Cash
The WazirX exploiter has allegedly laundered over $64 million through Tornado Cash, with suspicions of insider involvement emerging. PeckShieldAlert reported that on Sep. 13, the hacker moved 5,000 ETH, around $11.8 million, to a new address before using Tornado Cash to launder the stolen funds and cover their tracks. This latest transaction brings the total laundered amount to approximately $64.97 million over recent weeks.
Allegations of Insider Involvement in WazirX Breach
Reports have surfaced suggesting possible insider involvement in the $230 million breach at WazirX, India’s largest cryptocurrency exchange. An account named Justice for WazirX Users referenced unnamed sources and data from a filed report with the Delhi Police, highlighting suspicious activities prior to the hack. Allegations indicate that the attacker accessed the exchange using fake KYC information, leading to the depletion of WazirX’s hot wallet through GALA token withdrawals.
Challenges in WazirX’s Restructuring Process
Amidst the turmoil, WazirX’s restructuring efforts announced on Aug. 28 face challenges as the exchange seeks customer support for a moratorium application under Singapore’s insolvency laws. Users expressed frustration over an initial poll that offered only a “Yes” option, prompting management to expand the poll to include “No” and “No Position” choices. With just 441 users supporting the proposal, a hearing on the moratorium application is scheduled for Sept. 25, 2024, in the Singapore High Court.
