- The token's hacker shifted $6.5M in ETH to Tornado Money using 27 on-chain transactions.
- The hacker still holds 59,156 ETH, worth about $149M, causing concerns of more financial selloffs.
- The WazirX hack exposed security flaws and raised questions about the effectiveness of current protections.
The perpetrator behind the July 2024 WazirX exchange breach moved $6.5 million in Ethereum to Tornado Cash on Monday. This large transfer happened through 27 on-chain transactions, raising concerns about a possible selloff in the digital coin price. The hacker first tested the system with a small transfer of 0.1ETH before moving 100ETH in several batches.
Impact of the WazirX Hack
The WazirX malware attack in July 2024 led to the theft of over $230M from the market's multi-signature account. This incident severely affected the coin's operations, causing a freeze on withdrawals and halting trading activities. The hacker's use of Tornado Cash, a platform known for hiding the origins of stolen funds, has made recovery efforts more difficult.
Besides the 2,600 ETH already moved, the hacker still controls 59,156 ETH, valued at around $149 million, across nine different wallets. The large amount of Ethereum still with the hacker has raised serious concerns about more selloffs. The crypto market has been unstable, with recent drops in Ethereum prices leading to fears that a large selloff could cause more instability.
Community Response and Security Concerns
In response to the attack, the company suggested a social loss strategy to share the financial burden with its users. However, this proposal met with strong opposition from the community, who believed that the exchange should take the losses itself. WazirX then decided to drop the plan, leaving the platform's future uncertain.
The organisation's theft has brought to light security concerns in the cryptocurrency industry. The incident exposed weaknesses and raised questions about whether current security measures are enough to protect user assets. The hacker's use of Tornado Cash also shows the challenges law enforcement faces in tracking and recovering stolen funds.
Potential Market Impact
The actions of the WazirX hacker have put the cryptocurrency market on high alert. With a large amount of ETH still in the hacker's control, the risk of more selloffs is a major concern. This situation highlights the ongoing risks within the digital asset space as the economy continues to evolve and attract both legitimate and malicious actors. The crypto sector now faces the question: can they prevent another major selloff?
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