A recent development in the ongoing WazirX hacking saga has seen the transfer of $6.5 million in stolen funds through the notorious crypto mixer, Tornado Cash. This move underscores the challenges faced by the Indian crypto exchange as it attempts to recover from a massive $235 million theft. The hacker's actions have added further complexity to WazirX’s efforts to restore normal operations and have prompted the exchange to expedite the withdrawal process for its users. The situation remains fluid as WazirX navigates both legal and operational hurdles to stabilize its platform.

Hacker Moves $6.5 Million Through Tornado Cash

The hacker responsible for stealing over $235 million from WazirX has moved $6.5 million worth of Ethereum through Tornado Cash, a sanctioned crypto mixer. On September 3, blockchain security firm Cyvers reported that 2,600 ETH had been transferred to Tornado Cash in a bid to launder the stolen funds. The hacker, who initially held $6.7 million, made 26 separate transfers of 100 ETH each within just one hour, leaving only $154,000 in the compromised wallet.

WazirX Accelerates Withdrawal Process

In response to the ongoing crisis, WazirX has allowed users to withdraw up to 66% of their Indian Rupee (INR) balances nearly a week ahead of schedule. On September 3, the exchange announced that eligible users could begin withdrawing their funds immediately, a move that was originally planned for September 9. This decision is part of WazirX’s staggered recovery plan aimed at restoring normal financial operations following the July 18 exploit.

Reinstating Withdrawals Amid Legal Scrutiny

WazirX has begun reinstating INR withdrawals as part of its broader effort to normalize operations, though some funds remain frozen due to ongoing investigations. As of August 26, the exchange has partially resumed INR withdrawals, but 34% of rupee-denominated balances are still inaccessible due to legal issues. WazirX has indicated that these restrictions are a result of investigations by various law enforcement agencies.

Legal Restructuring and Future Challenges

WazirX’s efforts to recover from the hack include legal restructuring in Singapore, where the company is pursuing its legal proceedings. The exchange has selected Singapore as the jurisdiction for its restructuring process, highlighting the complexities involved in resolving the aftermath of the hack. As WazirX navigates these challenges, the focus remains on stabilizing its platform and ensuring the security of its users’ funds.