WazirX Hacker Moves Over $23 Million in Stolen ETH in 24 Hours

The hacker responsible for the WazirX security breach has moved over $23 million worth of stolen Ethereum (ETH) in the last 24 hours.

This comes amid exchange restructuring efforts that could return 55-57% of stolen assets to users.

Funds likely go to Tornado Cash

According to Cyvers Alerts, the hacker transferred 5,000 ETH, valued at approximately $11.7 million, to a new address on September 10. This transaction follows a similar one on September 9, where another 5,000 ETH, worth $11.5 million, was moved to a different address. .

UPDATE@WazirXIndia hacker just transferred 5K $ETH (~$11.7 million) to a new address: https://t.co/FH7yXEf3UW.
It is likely to be directed to @TornadoCashsimilar to yesterday’s activity!

Want to keep your business off our alert radar? Learn how to protect your assets – book a demo… https://t.co/RudLtRqqPz pic.twitter.com/5wt5PSQKpA

— Cyvers Alerts (@CyversAlerts) September 10, 2024

This brings the total funds moved by the exploiter in the last 24 hours to about 23 million dollars. Both transactions are also believed to be directed to Tornado Cash, a sanctioned service that allows users to mask wallet addresses on multiple blockchains.

The attacker started moving funds through the crypto mixer on September 3rd. Although it is not legal in the US, crypto criminals often use the mixer to hide the trail of stolen assets.

According to data from Arkham, this move follows the hacker’s recent transfer of approximately $4 million worth of ETH on the Ethereum network to the crypto mixer. The associated address has over $109 million in various tokens, with $103 million in ETH.

Recovery efforts

This series of transactions follows the July security breach where WazirX’s multisig wallet was compromised, leading to the theft of more than $230 million in user assets.

Since the incident, the exchange has announced that affected customers will not be able to recover all of their funds. The firm is currently in the process of restructuring, with the possibility of returning 55-57% of the stolen assets to users.

“This is what can be returned to users with the benefit of this restructuring,” said Jason Kardachi, managing director (restructuring) of Kroll, during a virtual press conference.

The effort includes developing revenue-generating products and mechanisms to share profits with users, track and recover stolen crypto assets, and allow those in need of immediate liquidity to withdraw their assets more quickly and exit the restructuring process.

Those who stay through the process are expected to receive more recoveries, according to the company.

WazirX is also actively seeking a “white knight” investor to inject capital and explore potential partnerships and collaborations. In addition, the Company intends to distribute the remaining assets to users on a pro rata basis.

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