According to security firm Blockchain Cyvers, more than $12 million in Ethereum (ETH) has been laundered through Tornado Cash, including deposits of around $2 million in ETH.
"Hacker @WazirXIndia just transferred 5,000 ETH worth $12 million to a new address," Cyvers posted, adding that the hacker has started laundering stolen funds through Tornado Cash.
Tornado Cash is an open source, non-custodial and fully decentralized cryptocurrency mixing platform that runs on Ethereum Virtual Machine compatible networks.
According to industry analysts, the WazirX hacker's laundering tactics resemble those employed by the North Korea-backed Lazarus Group, which is behind more than $2 billion in cryptocurrency thefts worldwide. Lazarus Group often uses Tornado Cash to hide its transactions as part of a sophisticated laundering process.
Meanwhile, WazirX has admitted that nearly 43 percent of its users are likely to lose stolen money in digital assets. WazirX has around 4.2 million users from India.
The platform said in a public meeting earlier this week, attended by WazirX co-founder Nischal Shetty, that customers will likely lose 43 percent of the funds they had invested in the platform.
George Gwee, a director at restructuring firm Kroll working with WazirX, reportedly said the best-case scenario is a return of "between 55 and 57 percent of funds."
The Singapore High Court was to hear WazirX's request for six months of protection while it restructures its liabilities.
According to legal experts, a thorough investigation by state authorities is needed considering the magnitude of cybercrime. The entire episode reiterates the growing need for effective regulation and rules for cryptocurrency trading in India that can help safeguard investors and broader national interests, they added.
Meanwhile, Indian cryptocurrency exchange CoinSwitch sued WazirX to recover funds trapped on the Shetty-run platform.
"Hacker @WazirXIndia just transferred 5,000 ETH worth $12 million to a new address," Cyvers posted, adding that the hacker has started laundering stolen funds through Tornado Cash.
Tornado Cash is an open source, non-custodial and fully decentralized cryptocurrency mixing platform that runs on Ethereum Virtual Machine compatible networks.
According to industry analysts, the WazirX hacker's laundering tactics resemble those employed by the North Korea-backed Lazarus Group, which is behind more than $2 billion in cryptocurrency thefts worldwide. Lazarus Group often uses Tornado Cash to hide its transactions as part of a sophisticated laundering process.
Meanwhile, WazirX has admitted that nearly 43 percent of its users are likely to lose stolen money in digital assets. WazirX has around 4.2 million users from India.
The platform said in a public meeting earlier this week, attended by WazirX co-founder Nischal Shetty, that customers will likely lose 43 percent of the funds they had invested in the platform.
George Gwee, a director at restructuring firm Kroll working with WazirX, reportedly said the best-case scenario is a return of "between 55 and 57 percent of funds."
The Singapore High Court was to hear WazirX's request for six months of protection while it restructures its liabilities.
According to legal experts, a thorough investigation by state authorities is needed considering the magnitude of cybercrime. The entire episode reiterates the growing need for effective regulation and rules for cryptocurrency trading in India that can help safeguard investors and broader national interests, they added.
Meanwhile, Indian cryptocurrency exchange CoinSwitch sued WazirX to recover funds trapped on the Shetty-run platform.
