- Hackers moved 5,000 ETH ($11.5M) from the WazirX breach to a new wallet.
- The North Korea Lazarus Group is suspected of laundering WazirX’s stolen funds via Tornado Cash.
- WazirX allows early INR withdrawals amid investigations.
Blockchain security firm Cyvers Alerts has reported a new development in India’s largest cryptocurrency heist. Hackers behind the July breach of WazirX exchange have shifted 5,000 Ether (ETH), worth roughly $11.5 million, to a new wallet address.
This transfer follows a series of movements by the hackers involving WazirX’s stolen funds. Just last Friday, they moved a similar amount to another new crypto wallet. Cyvers Alerts also noted a recent transfer on September 2, where a WazirX-hack-linked wallet moved 2,600 ETH (around $6.5 million) through Tornado Cash, a sanctioned mixing service often used to obscure the origin of stolen assets.
Read also: WazirX Hacker Cashes Out: $6.5M ETH Moved to Tornado Cash
The timing of these transfers coincides with WazirX’s announcement to allow users to withdraw up to 66% of their Indian rupee (INR) balances earlier than initially planned. This move, brought forward from September 9, aims to provide customers with faster access to their funds.
The Aftermath of the July Hack
WazirX suffered a significant breach in July, losing over $230 million in cryptocurrency. The hack affected the exchange’s multisig wallet, where $100 million in Shiba Inu tokens (SHIB) and $52 million worth of ETH were stolen. The looted funds made up roughly 45% of the WazirX’s reserves.
The notorious North Korea Lazarus Group has been linked to the WazirX hack. This group is alleged to have laundered over $1 billion in digital assets through Tornado Cash.
Read also: WazirX Hackers Transfer $12M in ETH, Laundering via Tornado Cash
Meanwhile, the exchange has initiated efforts to return to normal operations, including reinstating INR withdrawals on August 26. However, 34% of rupee-denominated balances remain frozen due to ongoing investigations by law enforcement agencies.
WazirX also faces legal hurdles regarding cryptocurrency withdrawals, which are being addressed through a restructuring process in Singapore. These events highlight the complexities of recovering assets in large-scale crypto thefts and the legal and operational challenges exchanges like WazirX face in rebuilding customer trust.
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