The recent activities of the party bad actor who exploited WazirX have gained huge attention from the crypto community. Spot On Chain, a popular on-chain analytics firm, disclosed that the WazirX hacker transacted 2,600 $ETH, with a value of $6.5 million, to Tornado Cash, a privacy-focused protocol that often serves to obscure the destination and origin of crypto transfers. This is the second time after the exploit that the funds have been transferred to the Tornado Cash mixer. In the previous transfer, multiple assets were transferred but this time only $ETH has been transferred.
The #WazirX Exploiter transferred 2,600 $ETH ($6.54M) to #TornadoCash 11 hours ago.Currently, the hacker still holds 59,156 $ETH ($148.8M) across 9 wallet addresses!Will there be an $ETH sell-off soon? Follow @spotonchain and set alerts for #Ethereum and the #WazirX entity… https://t.co/KQfDDs5too pic.twitter.com/rzHd4wXzFx
— Spot On Chain (@spotonchain) September 3, 2024
WazirX Exploiter Sends $ETH Tokens of $6.5M Worth to Tornado Cash
This development has raised significant concerns about the likelihood of a big-scale sell-off as the hacker has substantial holdings. According to Spot On Chain, the exploiter is still controlling a large amount of up to 59,156 $ETH (equaling $148.8M). These assets are spread across 9 diverse wallet addresses. The large size of these holdings has resulted in widespread speculation concerning the next moves of the exploiter.
If the hacker moves toward the liquidation of a big proportion of the assets, the selling pressure could rise. Following that, the price of Ethereum could dip down to a great extent. Tornado Cash’s usage for this transaction plays a significant role in this respect. The privacy-focused protocol lets the consumers mix their crypto transfers with others.
In this way, they can efficiently camouflage their funds. This increases the challenges for the investigators as well as the blockchain onlookers to track the stolen assets’ movement. In the case of the WazirX exploiter, this could serve as a strategic development to get ready for ultimate funds liquidation without being conveniently tracked.
The Transfer of 2,600 $ETH May Result in a Massive Impact on Ethereum and Wider Crypto Market
The Ethereum community is quite apprehensive about a major sell-off. Sudden and big $ETH sell-offs could raise market volatility, impacting Ethereum and the wider crypto ecosystem. Spot On Chain asserted that the sell-off of 2,600 $ETH by the WazirX exploiter to Tornado Cash is a notable event and could predict a massive impact on the market.
