Cryptocurrency Thief Returns, Dumping $100 Million Worth of SHIB and Ethereum
A recent development in the world of cryptocurrency has seen the hacker responsible for breaching one of India’s major crypto exchanges, WazirX, resurface as they moved a substantial amount of Ethereum (ETH). The criminal transferred 10,000 ETH, equivalent to $23.3 million, within a 24-hour timeframe. The hacker took steps to conceal the origin of the funds by sending 5,000 ETH to Tornado Cash, a well-known privacy protocol associated with cryptocurrency laundering, and the remaining 5,000 ETH to a new address.
Over the course of just eight days, the hacker managed to launder 12,600 ETH, totaling around $30.13 million. This activity has boosted the hacker’s total stash to an astonishing 49,100 ETH, valued at $115 million. The hacker’s actions have drawn attention following the significant breach of WazirX at the end of July, where nearly $250 million worth of various cryptocurrencies were stolen from India’s leading exchange. Ethereum has particularly been in focus among the stolen assets being actively traded.
One notable impact of the hacker’s actions on the market was the sale of 5.4 trillion Shiba Inu (SHIB) tokens, amounting to $102 million, which led to an 8% decline in the price of this meme-inspired cryptocurrency. To address the aftermath of the breach, Zettai, the company behind WazirX based in Singapore, has sought temporary relief from some of its obligations through the High Court of Singapore. This move aims to provide the company with time to restructure its liabilities in the aftermath of the $230 million hack and to compensate affected users.
An independent audit revealed that Liminal Custody, the primary infrastructure provider for WazirX, was not complicit in the breach, contrary to initial suggestions by the exchange’s management. It appears that the breach was a result of vulnerabilities external to the platform rather than weaknesses within its internal infrastructure. The ongoing developments in the wake of the WazirX breach underscore the challenges and risks faced by the cryptocurrency industry in safeguarding digital assets against malicious actors.
