The recent cyberattack on the Indian crypto exchange WazirX has caused chaos and raised concerns within the cryptocurrency community. The hacker managed to steal over $235 million from the exchange, and is now reportedly transferring around $10 million through sanctioned Tornado Cash in an attempt to launder the stolen funds. This highlights a glaring security breach within WazirX, which has potentially put the assets of its users at risk.
The laundering tactics employed by the hacker bear a resemblance to those used by the notorious North Korea-backed Lazarus Group, responsible for over $2 billion in crypto thefts. By utilizing Tornado Cash to obscure transactions, the hacker is attempting to cover their tracks and make it difficult to trace the stolen funds. This sophisticated laundering process, which sometimes involves chain-hopping, showcases the level of expertise and planning behind the cyberattack.
In response to the cyberattack, WazirX announced an early withdrawal window for users to access 66% of their Indian rupee (INR) token balances. Despite this move, some users expressed dissatisfaction with the limited access to their funds and raised concerns about when crypto withdrawals would resume. The exchange’s legal team has hinted that users may only recover 55% to 57% of their crypto holdings, indicating the severity of the situation.
As a result of the security breach and subsequent money laundering activities, WazirX has filed for restructuring in Singapore to address its liabilities. This move reflects the financial strain and legal implications faced by the exchange due to the cyberattack. It also highlights the importance of robust security measures and proactive measures to safeguard against such incidents in the future.
The impact of cybercrime on the Indian crypto exchange WazirX is significant and far-reaching. The breach has not only resulted in substantial monetary losses but has also raised questions about the security practices of cryptocurrency exchanges. Moving forward, it is crucial for exchanges to prioritize security and implement stringent measures to protect user assets and prevent similar incidents from occurring. The response from WazirX and the actions taken in the aftermath of the cyberattack will be crucial in rebuilding trust and ensuring the safety of user funds.
