Bitrabo Editorial
A concerning development has arisen as the perpetrator of the WazirX cryptocurrency hack, who stole $100 million in Shiba Inu tokens, is still actively laundering the stolen Ethereum (ETH). As reported by Spot On Chain, a prominent on-chain analytics firm, the hacker recently executed a transfer of 10,000 ETH, worth roughly $23.3 million during that transaction, as part of their laundering efforts. This activity coincides with Ethereum’s struggle to reach the $2,400 mark.
Overview of the Shiba Inu Hacker’s Actions
The WazirX exchange, a major player in India’s cryptocurrency market, experienced a security breach in July, resulting in around $230 million worth of digital assets being stolen. Among the stolen assets, more than $100 million was in Shiba Inu, with an additional $52 million in ETH. Elliptic indicates that the hack was conducted by individuals associated with North Korea.
According to Arkham Intelligence, a blockchain analysis company, these attackers quickly began converting their stolen cryptocurrencies into cash. Notably, they promptly started selling off their substantial Shiba Inu holdings. This abrupt and extensive sale of Shiba Inu tokens had a significant and immediate effect on the market, causing a drastic drop in Shiba Inu’s market price as traders reacted to the sudden influx of tokens.
Since the breach, these hackers have systematically been working to launder and sell their stolen cryptocurrencies, with a significant focus on Ethereum. Their latest laundering action involved transferring 5,000 ETH via Tornado Cash, a contentious privacy tool often utilized by hackers for cleansing stolen ETH. Spot On Chain also noted a subsequent transfer of another 5,000 ETH to a new wallet, likely for further laundering pursuits.
In just over a week, the hackers have laundered 12,600 ETH valued at $30.13 million. Currently, they still retain control of 43,805 ETH, approximately worth $102.17 million. Along with their massive Ethereum holdings, they possess several different tokens, bringing the total value of their illicitly obtained crypto to about $107.58 million.
The WazirX hacker continues to launder stolen $ETH!
In the last day, the attacker transferred 10K $ETH ($23.3M), which included:
• an additional 5K $ETH sent to #TornadoCash
• another 5K $ETH moved to a new address for ongoing laundering efforts.
Total laundered: 12.6K $ETH ($30.13M) in… pic.twitter.com/HONUuhnqCB
— Spot On Chain (@spotonchain) September 10, 2024
The quantity of tokens in their possession poses a risk to the overall cryptocurrency market, particularly affecting Ethereum. Given the existing market volatility and Ethereum’s difficulty maintaining significant support levels, any further asset sell-offs by the hackers could apply additional selling pressure, leading to even more price instability.
After a back-and-forth regarding responsibility with the crypto custody firm Liminal, WazirX is now working on a detailed restructuring strategy to manage the impacts of the hack. However, this recovery process may take time since the stolen assets represent nearly 45% of the exchange’s total holdings of $500 million, based on a report from June.
Presently, Ethereum is trading at $2,330, experiencing a 2.78% decrease over the past week, though it has seen a 7.22% increase from a low of $2,173 recorded on September 6.