A hacker who stole over $235 million from the Indian cryptocurrency exchange WazirX has moved $6.5 million in stolen funds through the sanctioned crypto mixer Tornado Cash. The move was flagged by blockchain security platform Cyvers on Sept. 3, which reported the transfer of 2,600 Ether — worth $6.5 million at the time — in a bid to launder the stolen assets.
The hacker’s wallet initially held $6.7 million, but after making 26 separate transfers of 100 ETH each to Tornado Cash in just one hour, it now contains only $154,000, according to data from DeBank, a crypto tracking platform.
Meanwhile, WazirX has begun allowing users to withdraw up to 66% of their Indian rupee token balances, earlier than the planned Sept. 9 window. The exchange announced on Sept. 3 that eligible users could now access their funds up to the full limit, an unexpected move to manage user unrest following the hack.
After the $235 million exploit on July 18, WazirX is gradually resuming its financial operations. The process, which includes reinstating withdrawals, began on Aug. 26. However, 34% of rupee-denominated balances remain “frozen” due to ongoing investigations with law enforcement agencies, as confirmed by the exchange on Aug. 23.
Legal issues continue to cloud the exchange’s future, with WazirX pursuing legal restructuring in Singapore, its chosen jurisdiction for ongoing proceedings. As users grapple with the aftermath of the hack, WazirX’s efforts to stabilize appear uncertain amidst the looming threat of more crypto laundering activities.