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In the cryptocurrency sector, the WazirX exploiter, linked to a high-profile hack of the Indian-based exchange, has moved 2,600 ETH (approximately $6.5 million) to Tornado Cash, a mixing platform. The latest transfers, reported on Monday, have fueled discussions about the potential impact on Ethereum's market.
According to data from SpotOnChain, the exploiter conducted 27 on-chain transfers, initially moving a small amount of 0.1 ETH to test the process before transferring 100 ETH in multiple batches. This laundering activity marks the latest in a series of moves by the alleged North Korean-affiliated hacker, who previously transferred 16,345 ETH (valued at $56.88 million) to two new wallets in July. The hacker has also exchanged all exploited SHIB and MATIC tokens for Ether, amassing 5.43 trillion SHIB ($101 million), 15,298 ETH ($52.6 million), and 20.5 million MATIC ($11.3 million).
WazirX’s Recovery Efforts
WazirX(WRX), one of India's leading cryptocurrency platforms, is actively pursuing the recovery of the stolen funds. The exchange has allocated $12 million towards investigations and legal proceedings. In an effort to trace the stolen assets, WazirX has reached out to over 500 exchanges and prominent on-chain tracking experts.
The efforts to recover the funds reflect WazirX’s commitment to addressing the hack and minimizing the impact on its operations. However, with the hacker continuing to move and potentially launder assets, the path to recovery remains challenging.
Ethereum (ETH) stakes and Market Impact
Following the recent transactions, on-chain analysis indicates that the WazirX hacker still retains a significant amount of Ethereum. At the time of reporting, the exploiter holds 59,156 ETH (worth approximately $149 million), spread across nine different wallets. The substantial holdings raise concerns about potential future selloffs, which could impact Ethereum’s market dynamics.
Recent movements in the broader cryptocurrency market have shown price volatility, with Ethereum experiencing periods of weakness. Concerns have been raised that if the hacker decides to offload the remaining Ethereum, it could create additional market pressure. A recent large-scale Ethereum sell-off from Jump Trading in August saw a significant market reaction, with Ethereum’s value dropping by over 10%.
Moreover, the anticipated positive impact of Ethereum spot exchange-traded funds (ETFs) on the market has yet to materialize. Since their launch in July, these ETFs have experienced a net outflow of $477.25 million, falling short of expectations for substantial inflows.
Current Ethereum Market Status
Despite the concerns, Ethereum showed signs of recovery on Tuesday, with its price increasing by over 2% in the past 24 hours. At the time of writing, Ethereum is trading at $2,517, with a market capitalization of $302 billion.
The movements of large Ethereum holdings by exploiters continue to be a topic of interest in the cryptocurrency community. As the situation unfolds, the focus remains on the actions of the WazirX hacker and their potential implications for the broader market.
