WazirX Hacker Begins Laundering Stolen Funds, Resembles Lazarus Group Tactics

The hacker responsible for stealing over $235 million from the Indian crypto exchange WazirX has transferred around $10 million through sanctioned Tornado Cash

The hacker responsible for stealing over $235 million from the Indian crypto exchange WazirX has begun moving the stolen funds, with around $10 million being transferred through sanctioned mixer Tornado Cash in the past 24 hours, blockchain security firm Cyvers has reported.

In a Sept. 5 message to CryptoSlate, Cyvers reported that the hacker had begun shifting assets the previous day. So far, $10 million in Ethereum (ETH) has been laundered through Tornado Cash, including deposits of about $2 million in ETH.

Cyvers also noted that the hacker moved approximately 5,000 ETH (valued at $12 million) to a new wallet address, “0x2…968.”

According to market analysts, the laundering tactics used by the WazirX hacker bear a striking resemblance to those employed by the North Korea-backed Lazarus Group. This group is reportedly responsible for more than $2 billion in crypto thefts, which are allegedly used to fund North Korean government activities.

Lazarus Group often utilizes Tornado Cash to conceal its transactions as part of an advanced laundering process that sometimes involves chain-hopping.

These laundering activities occur as WazirX has announced an early withdrawal window for users to access 66% of their Indian rupee (INR) token balances. Initially set for Sept. 9, the exchange moved the withdrawal date forward, allowing users to access funds sooner.

On Sept. 3, Nischal Shetty, the co-founder of the Indian crypto trading platform, stated:

“Phase 2 of INR withdrawals is live ahead of schedule. We’re working tirelessly to deliver even faster results. Our objective is to be ahead of schedule for all the timelines we share. We will try our level best to make it happen.”

However, some users expressed dissatisfaction with the partial access and inquired about the resumption of crypto withdrawals. According to reports, WazirX’s legal team has indicated that users may only be able to recover 55% to 57% of their crypto holdings.

In the meantime, the exchange has filed for restructuring in Singapore to cover its liabilities.

Mentioned in this article

Oluwapelumi Adejumo

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

Liam 'Akiba' Wright

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

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