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 Wazir X hacker launders over $64 million as community suspects insider involvement 

The hacker behind the $230 million loot from WazirX, India’s biggest crypto exchange has laundered a fresh $64 million via infamous crypto mixer Tornado cash.

This recent move by the hacker came amid growing speculation of an insider in Wazir X working with the hacker.

The latest move by the hacker was picked up by Blockchain Analytics Firm Peckshield Alert and details of the transaction were revealed by the onchain tracker.

According to Peckshield, On September 13 the hacker moved 5,000 ETH worth roughly $11.8 million to a new address before laundering the loot via crypto mixer Tornado cash to cover his trails.

“#PeckShieldAlert The #WazirX exploiter-labeled address has moved the 5th batch of 5K $ETH (worth ~$11.8M) to a new address 0xa4d1…9845, likely preparing to launder them through a mixer.”  

This transaction takes the total tally of crypto assets laundered by the hacker to $27,600 ETH approximately $64.97 million.

The hacker after moving the 5,000 ETH to a new address moved a huge chunk of the assets to crypto mixer Tornado Cash where he laundered it.

Activities of the Hacker over the week has raised allegations of an insider collaboration amongst the Wazir X community.

Alleged Insider Involvement  

The allegations of Insider involvement is spearheaded by an X account named ‘Justice for Wazir X users” which claimed that certain suspicious activities took place in the exchange before the hack.

The account claimed that the hacker used a fake KYC application to open A Wazir X account. The hacker used this fake account to deposit cryptocurrency which was traded for a certain GALA token.

On the day of the Hack, The hacker was able to inject malicious code into WazirX platform causing a bug in the system. As the Wazir X team tried to fix the Bug, he successfully swiped their credentials and was able to use them to complete the heist.

Crystal Intelligence after analyzing the development revealed that the laptops of Key personnel used to sign the transaction were not compromised. A separate audit by Wazir X security partner Liminal also found no evidence of custodial breach.

The confirmation by both parties that the laptop of the key signatories of the transaction that led to the heist were not compromised led to more confusion and growing speculation of a insider involvement.

What to Know  

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