Investors are increasingly concerned as the hacker behind the WazirX breach, which resulted in the theft of $230 million in July 2024, has begun transferring millions of dollars in stolen assets through Tornado Cash. Early Tuesday morning, the hacker initiated the transfer of 2,600 ETH, valued at approximately $6.5 million, to the sanctioned mixer.
Ongoing Transfers Raise Concerns
The transactions, totaling 26 transfers of 100 ETH each, were tracked by Arkham Intelligence and began mere hours after WazirX’s first town hall meeting, where the exchange discussed its application for a six-month moratorium to restructure its liabilities.
The hacker’s use of Tornado Cash, a platform sanctioned by the U.S. Treasury Department for laundering billions of dollars in virtual currency, has heightened tensions. Despite the ban in the U.S., Tornado Cash continues to operate in various jurisdictions, including North Korea.
WazirX's Response and Investor Discontent
In response to the hack, WazirX implemented a 66% limit on users' Indian rupee withdrawals and filed an affidavit with the High Court of Singapore to seek legal protection. During the town hall meeting, Kroll managing director Jason Karachi indicated that a full recovery in crypto terms is unlikely, estimating a range of 52%-57% in potential recoveries.
Investors expressed frustration with the lack of new information from the town hall, and concerns continue to grow as the hacker’s activities persist. Trading on WazirX will resume only after creditors approve the restructuring proposal and the court sanctions it.
Read more at Decrypt.
