How is WazirX hacked?

In the aftermath of the attack, the hacker displayed a high level of sophistication and cunning. They didn't stop at simply stealing the funds; they went on to distribute the stolen assets across several wallets, making it more challenging for authorities to trace and recover them.

As part of their cover-up strategy, the hacker engaged in a series of token swaps, primarily converting the stolen cryptocurrencies into Ethereum (ETH). This move allowed them to obscure the origin of the funds and potentially launder them through various channels within the decentralized finance (DeFi) ecosystem.

BTCC, a renowned cryptocurrency exchange, offers a comprehensive suite of services tailored to meet the diverse needs of its users. Among its offerings are spot trading, where users can buy and sell cryptocurrencies at the current market price, and futures trading, which allows for Leveraged positions and exposure to price movements in the future.

The events leading up to the WazirX hack were traced back to July 10th, 2024, precisely eight days prior to the actual attack. During this period, the perpetrator utilized Tornado Cash, a popular privacy-enhancing tool in the cryptocurrency ecosystem, to fund their nefarious activities.

On July 18th, the long-awaited attack finally materialized, targeting the WazirX wallet. The hacker successfully breached the system's defenses and drained it of a staggering $230 million worth of digital assets. This incident sent shockwaves through the cryptocurrency community, highlighting the need for robust security measures.