A recent hacking incident involving the Indian crypto exchange WazirX has raised concerns in the cryptocurrency community. The hacker managed to steal over $235 million worth of assets from the exchange, prompting a swift response from blockchain security firm Cyvers. In the past 24 hours, the hacker has already transferred around $10 million through sanctioned Tornado Cash, a popular tool used for money laundering in the crypto space.
Similar Tactics to Notorious Groups
Market analysts have noted that the hacker’s laundering tactics bear resemblance to those used by the North Korea-backed Lazarus Group. This group has been linked to over $2 billion in crypto thefts and is believed to fund North Korean government activities. By utilizing Tornado Cash and other sophisticated techniques, hackers like the one targeting WazirX are able to obscure their illicit activities and avoid detection by authorities.
Following the hacking incident, WazirX announced an early withdrawal window for users to access a portion of their funds. While the exchange initially set a date for users to access their Indian rupee (INR) token balances, it has since moved the timeline forward to allow for faster withdrawals. However, some users have expressed dissatisfaction with the partial access granted and have raised questions about when full crypto withdrawals will resume.
WazirX’s legal team has indicated that users may only be able to recover a portion of their crypto holdings, potentially as low as 55% to 57%. This news has caused further concern among users who are uncertain about the security of their assets on the exchange. In response to these challenges, WazirX has filed for restructuring in Singapore in an effort to address its liabilities and ensure the continued operation of the platform.
The recent hacking incident at WazirX serves as a stark reminder of the risks and consequences associated with storing assets on centralized exchanges. As hackers become increasingly sophisticated in their techniques, users must remain vigilant and take necessary precautions to protect their funds. The cryptocurrency community must work together to develop stronger security measures and protocols to prevent future incidents and protect the integrity of the industry.
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