Recently, there has been news about hackers who targeted WazirX and managed to convert around $150 million worth of altcoins into Ethereum (ETH). The hackers, believed to be associated with the North Korean Lazarus Group, exchanged $90.2 million in SHIB, $10.2 million in MATIC, and approximately $7.5 million in PEPE for ETH. This activity has caused their ETH holdings to increase from $52 million to $201 million.
Spot On Chain, an on-chain insights firm, reported that the total ETH holdings of the hackers have reached 59,097 ETH, equivalent to $201 million. Interestingly, the hackers have not taken any further action with this ETH and still possess around $12 million in altcoins such as CHR, CELR, OOKI, and FRONT.
The decision to convert the stolen altcoins into ETH is a strategic move by the hackers. This is because many altcoins have built-in security features that allow them to be blacklisted once stolen, making it easier to trace illicit funds. For example, USDT has this feature, which helps Tether adhere to regulatory requirements. Similarly, other centralized altcoins have similar mechanisms in place.
On the other hand, Ethereum does not have these restrictions, making it a more convenient option for hackers looking to evade detection. Additionally, ETH’s high liquidity and stability make it easier for hackers to navigate the market without worrying about significant fluctuations in the value of their stolen assets.
Typically, hackers who convert stolen assets use mixer services like Tornado Cash or sell them for fiat on centralized exchanges (CEXs) that may not have robust anti-money laundering (AML) checks. Despite these actions, the hackers still retain $12 million in altcoins, including CHR, CELR, OOKI, and FRONT.
In response to the breach, WazirX reassured its users that they are actively working to recover the stolen funds. The platform stated, “We are dedicated to finding and retrieving the funds. We have engaged with top experts to assist us in this process. While these are our initial findings, we will provide updates as we progress in our investigation.”
It is crucial for cryptocurrency exchanges and users to remain vigilant against hacking attempts and take necessary precautions to safeguard their assets. The incident involving WazirX highlights the ongoing challenges in the crypto space and the importance of robust security measures to prevent such breaches in the future.