The WazirX hackers, who have remained anonymous since the July hack, are reportedly distributing the stolen funds. Data collected by Arkham Research shows that hackers are using the controversial Tornado Cash platform to do this. Of the more than $230 million (approximately ₹1,900 crores) in stolen funds, the hackers stole $6.5 million (approximately ₹5,450 crores) worth of Ether tokens from Tornado Cash, currently licensed in the US Platform.
Tornado Cash basically allows users to deposit their crypto tokens into a pool of different crypto tokens and transfer the funds to their wallet in the form of other cryptocurrencies. In recent years, Tornado Cash has become a popular tool for cybercriminals who want to leave no trace when transferring funds obtained through illegal activities.
According to Arkham data, the hackers facilitated 26 transactions to transfer the amounts in question to Tornado Cash addresses. Etherscan data also showed that hackers transferred funds in the form of 100 ETH per transaction. Screenshots of these details were published on social networks.
Nischal Shetty, co-founder of WazirX, confirmed in an interview with Gadgets360 this week that the hacker has not yet been identified. Research analysts have previously claimed that North Korea’s notorious Lazarus Group may have carried out the hack.
“Most researchers would say this pattern is consistent with Lazarus’ group. But ultimately Lazarus’ group is not one to come and prove themselves. So we never confirm that. One of the best researchers in the industry.” Shetty says this is the pattern fits perfectly and we have reliable information about the feasibility.
Last week, Minister X took the first steps toward financial reconstruction following the hack. The exchange sought a stay in the Singapore court to buy time to analyze the debt and reinvest. It may take WazirX up to 6 months to complete this process.
Meanwhile, exchanges have started withdrawing INR and the team is encouraging users to withdraw 66% of their unfixed INR balance at this time.
The exchange said it was working with law enforcement and CERT-In to identify the hackers.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.