Stay updated with the latest in the cryptocurrency world: WazirX hacker transfers $6 million through Tornado Cash, Brazil's Supreme Court upholds X platform's block, and crypto investments face $305 million outflow amid U.S. economic data.
Today’s cryptocurrency news brought several significant updates, each of which could impact the market and investor sentiment.
Related: Hacker Transfers $57M in Stolen WazirX Funds to New Wallets
The first event concerns a major hacking incident. A hacker connected to the high-profile breach of the Indian cryptocurrency exchange WazirX has transferred $6.5 million in Ethereum through the sanctioned crypto mixer Tornado Cash. This move was made to obscure the stolen funds and complicate their tracking. The hacker conducted 26 separate transactions, each for 100 ETH, successfully masking their actions. A total of 2600 ETH was transferred, and as of the latest checks, only $154,000 remains in the hacker’s wallet. The WazirX breach sent shockwaves through the crypto community, particularly due to the scale of the theft—$235 million. Experts suggest that the notorious North Korean group Lazarus might be behind this attack, adding to the seriousness of the situation.
The second event involves a legal clash between the social network X and Brazilian authorities. The Supreme Court of Brazil has upheld a decision to suspend X’s operations in the country. This came after X’s CEO, Elon Musk, refused to appoint a legal representative for the company’s operations in Brazil. In response, Judge Alexandre de Moraes issued an order to block the platform. The Supreme Court panel supported this ruling, leaving X in a state of uncertainty. Musk responded by labeling Moraes’ actions as “dictatorial” and predicted a surge in VPN usage among Brazilians to bypass the block. However, using a VPN to access X could lead to fines of up to $8,900. The platform will remain blocked until it pays outstanding fines exceeding $3 million.
Related: Elon Musk Calls for Capital Gains Tax Deferral for Government Efficiency
The third event highlights capital movements in the cryptocurrency market. Amid strong economic data from the United States, cryptocurrency investment products saw an outflow of $305 million in the last week of August. This outflow was the most significant amid expectations of interest rate hikes by the Federal Reserve (Fed) in the U.S. Despite these substantial outflows in the U.S., some countries, like Switzerland and Canada, recorded small inflows into their crypto investment products.
Related: Global Cryptocurrency Regulation: Challenges, Advocacy, and Enforcement
These events underscore the technical risks and the political and economic challenges currently facing the cryptocurrency market.
