The WazirX hacker recently transferred about $23 million in cryptocurrencies to Tornado Cash after a July breach that resulted in $234 million being stolen from the exchange. Cyvers Alerts reported that the hacker moved 5,000 ETH, worth approximately $11.7 million, to a new address, with $4.7 million subsequently sent to Tornado Cash. Earlier in the week, Spot On Chain also revealed that the hacker transferred 5,000 ETH to the mixing tool. Prior to these transactions, the hacker had already moved 2,600 ETH, valued at $6.5 million, to the same platform.
Following the July hack, Lookonchain reported that the hacker had converted most of the stolen assets into ether (ETH). As of the latest update, the hacker’s wallet contained $95.3 million in cryptocurrency, with $92.3 million in ETH. While the exact method of the hack is still being investigated, early analysis from blockchain firm Elliptic suggests a potential involvement of North Korean-linked hackers in the incident.
By transferring the stolen funds to Tornado Cash, the hacker is making a deliberate effort to obscure the trail of the stolen cryptocurrency. Using Tornado Cash allows the hacker to break the link between the sender and receiver in cryptocurrency transactions, making it significantly more difficult to trace the origin or destination of the stolen assets. This level of anonymity helps the hacker avoid detection and potential legal consequences. Despite its controversial reputation, especially following US Treasury sanctions, Tornado Cash continues to operate in multiple regions.
It is worth noting that the individual responsible for the Poloniex exchange heist, which involved the theft of over $100 million, also transferred $76 million to Tornado Cash earlier this year. This trend of hackers utilizing mixing tools like Tornado Cash to obscure their illicit activities highlights the ongoing challenges in tracking and preventing cryptocurrency-related crimes. As the cryptocurrency ecosystem continues to evolve, regulators and industry participants will need to remain vigilant and proactive in addressing security vulnerabilities and combatting fraudulent activities in the space.
