In a surprising development, the recent WazirX $230M theft in cryptocurrency one of India’s top exchanges, has been connected to the secretive Hawala network.
The Indian cryptocurrency community experienced its largest theft ever. Online cyber criminals stole $230 M (Rs 2000 Cr) from famous Indian Crypto Exchange WazirX last month. This incident raised serious security concerns amongst crypto investors globally, as thousands of crypto investors lost their life savings in this hack.
WazirX $230M Theft: Investigation Underway
WazirX first reported the theft to the central cybercrime portal, the Financial Intelligence Unit, and the Indian Computer Emergency Response Team. A police case was filed in Delhi to start a detailed investigation to find the stolen funds and catch those responsible.
Two leading digital forensics firms, Pelorus Technology and Crystal Intelligence, are leading the investigation. These firms specialize in investigating major cyber and cryptocurrency issues, and their expertise has revealed the advanced techniques used in the theft.
Crystal Intelligence, famous for its real-time blockchain monitoring tools, was key in tracking the stolen funds. Their analysis showed that the heist was carefully planned, not a sudden attack. The wallet linked to WazirX was hacked, and the funds were moved through 200 transactions on July 18. Investigators also found out that the theft had been planned since July 10.
The Role of Tornado Cash: WazirX $230M Theft
In WazirX $230M theft, A key part of this theft was the use of Tornado Cash, a cryptocurrency mixing service that works like the traditional Hawala system. Tornado Cash lets users hide where their money comes from, making it very hard to trace transactions. The thief used this service to deposit about $1,080 worth of cryptocurrency into their wallet to pay for transaction fees, which helped them hide their identity.
“Tornado Cash operates like a Hawala service in the digital world, enabling users to hide their tracks and maintain anonymity,” explained Sanjeev Shahi, Country Manager at Crystal Intelligence.
The stolen funds were quickly converted into various cryptocurrencies and dispersed into multiple wallets across two different exchanges. A total of 2,000 transactions were executed within days, making it difficult for investigators to trace the money trail.
From July 18 to July 22, most of the stolen assets were moved into three wallets that are not connected to any exchange. However, even with these efforts to hide the money, the thief has a big challenge: converting the stolen assets into cash without revealing their identity.
WazirX $230M theft, connected to the Hawala-like operations of Tornado Cash, has shown the weaknesses in the cryptocurrency world and the advanced methods cybercriminals use. As the investigation goes on, this incident highlights the need for stronger regulations and better security to protect digital assets in a complex financial system.
Also Read: WazirX Hack: North Korean Hackers Identified as $235 M Theft Culprits!
