Venmo and PayPal have announced the integration of Ethereum Name Service (ENS), allowing users to transfer cryptocurrency using simplified blockchain addresses. This update comes as PayPal continues to expand its presence in the blockchain space, with its stablecoin PYUSD recently surpassing $1 billion in market capitalization. Meanwhile, a recent hack targeting WazirX, one of India’s largest crypto exchanges, highlights ongoing security challenges in the industry. The hacker, who stole over $230 million in assets, has resurfaced, moving 10,000 ETH through privacy protocols in an effort to launder the funds.
Hacker Resurfaces After WazirX Breach, Moves 10,000 ETH in Latest Maneuver
The hacker responsible for the breach of one of India’s largest cryptocurrency exchanges, WazirX, has reemerged after a period of relative quiet. Over a recent 24-hour span, the cybercriminal moved 10,000 ETH, valued at approximately $23.3 million, further complicating efforts to track the stolen assets. The anonymous hacker split the funds into two transactions: one of 5,000 ETH sent to Tornado Cash, a notorious privacy protocol often linked to cryptocurrency laundering, and another 5,000 ETH to a fresh, unidentified wallet to further obscure the stolen funds.
The activity marks another chapter in the post-hack laundering spree, as the hacker continues to evade authorities. In the past eight days alone, the hacker has successfully laundered an additional 12,600 ETH, worth approximately $30.13 million, bringing the total stash to 49,100 ETH, valued at a staggering $115 million.
The hacker’s recent maneuvers stem from the devastating WazirX breach that occurred at the end of July 2024, when nearly $230 million worth of various cryptocurrencies were stolen from the exchange. WazirX, a key player in India’s crypto ecosystem, suffered what is now one of the largest hacks in the country’s history.
In the wake of the breach, the hacker quickly began moving the stolen assets across various chains, with Ethereum being a major target. Other cryptocurrencies like Shiba Inu (SHIB) also saw substantial sales. One of the hacker’s most significant transactions involved the sale of 5.4 trillion SHIB, valued at $102 million, which caused an 8% drop in SHIB’s price, sending shockwaves across the market. The hacker’s actions not only destabilized the exchange but also impacted several cryptocurrencies and traders in the broader ecosystem.
The hacker’s use of Tornado Cash has reignited debates about the use of privacy protocols in the crypto space. Tornado Cash, a decentralized privacy solution built on Ethereum, allows users to obscure their crypto transactions, making it difficult for blockchain tracking tools to trace where the assets are moved. While the protocol is often used for legitimate privacy purposes, it has also become a popular tool for cybercriminals to launder stolen crypto.
By funneling 5,000 ETH into Tornado Cash, the hacker has likely succeeded in obfuscating the origins of those funds. The other 5,000 ETH transferred to a new wallet is a familiar tactic used by cybercriminals to break the transaction chain and further muddy the waters for investigators.
Zettai’s Response and Legal Maneuvers
To manage the aftermath of the breach, Zettai, the Singapore-based company behind WazirX, has turned to the courts in a bid to gain time to restructure its financial liabilities and address user compensation claims. Zettai has approached the High Court of Singapore, seeking a temporary stay on some of its obligations, hoping to buy crucial time to resolve the $230 million liability stemming from the hack.
An independent audit into the breach has cleared Liminal Custody, WazirX’s main infrastructure provider, of any involvement. This finding stands in stark contrast to initial reports from WazirX management, which hinted at possible vulnerabilities within Liminal’s infrastructure as a key cause of the hack.
The audit suggests that the breach was the result of external vulnerabilities, potentially a sophisticated external exploit, rather than any weaknesses in WazirX’s internal systems. The revelation adds another layer of complexity to the situation, as WazirX now faces the dual challenge of dealing with the hacker’s ongoing activities and defending its reputation in the wake of the breach.
The aftermath of the WazirX hack is far-reaching, with multiple cryptocurrencies experiencing turbulence as a direct result of the stolen assets being traded or liquidated. Ethereum, in particular, has been a primary target for the hacker, and its price has seen increased volatility since the breach.
Meanwhile, the sale of large amounts of Shiba Inu tokens has had a noticeable impact on its price, further eroding investor confidence. The 8% drop in SHIB’s value following the sale of 5.4 trillion tokens has raised concerns about the influence that a single entity, particularly a bad actor, can have on the market.
WazirX’s reputation as one of India’s largest crypto exchanges hangs in the balance. The breach, the fallout, and the hacker’s ongoing actions have cast a shadow over the platform’s future. While Zettai’s efforts to seek legal protection and restructure liabilities are underway, the road to recovery may be long and fraught with challenges.
As the hacker continues to move the stolen funds, the larger crypto community remains on high alert, with many questioning the security of exchanges and the effectiveness of current security protocols. For now, the hacker’s trail grows colder with each obfuscating transaction, but the global crypto industry will be watching closely, hoping for breakthroughs in the investigation.
Venmo and PayPal Users Can Now Transfer Cryptocurrency Using ENS Names in Major Integration
On a more positive note, ENS Labs, the team behind the Ethereum Name Service (ENS), announced a groundbreaking integration that allows Venmo and PayPal users to transfer cryptocurrency using ENS names. The move is expected to streamline digital transactions for more than 270 million users across the United States, bringing blockchain technology closer to mainstream adoption.
The integration simplifies the complex process of transferring cryptocurrency by allowing users to replace long, confusing blockchain addresses with human-readable ENS names. Instead of inputting a lengthy string of random letters and numbers, users can now send crypto to easily recognizable names like ”yourname.eth,” significantly reducing the risk of errors and lost funds in the process.
ENS Labs’ integration with Venmo and PayPal is poised to reshape the user experience for millions of individuals who regularly use these platforms. Khori Whittaker, executive director of ENS Labs, said the integration will bring ENS naming capabilities to “millions of users through Venmo, PayPal Mobile, and PayPal Web.”
By using ENS names, users can bypass the need for error-prone blockchain addresses, making crypto transfers as simple as sending a message. The move could significantly reduce the barrier for entry for those unfamiliar with crypto transfers, making it more approachable for the average user.
PayPal’s growing influence in the blockchain space has been a subject of interest for the past several years. Its latest developments have positioned the payment giant as a key player in the crypto sector. According to CoinMarketCap, PayPal’s stablecoin, PayPal USD (PYUSD), recently surpassed $1 billion in total market capitalization.
In May 2024, PayPal took another significant step in its blockchain journey by launching PYUSD on the Solana network. The company partnered with Crypto.com, Phantom, and Paxos to onboard users into the growing ecosystem. Solana’s blockchain, known for its speed and low transaction fees, provided an ideal platform for PayPal to introduce its stablecoin, adding another layer of accessibility for crypto enthusiasts.
For ENS Labs, the integration with Venmo and PayPal offers a unique opportunity to reach new audiences and bridge the gap between Web2 payment platforms and Web3 innovations.
“Working with PayPal and Venmo allows us to reach those who are new to the space and those who prefer the familiarity of Web2 payment platforms,” explained Marta Cura, director of business development at ENS Labs.
The Ethereum Name Service (ENS) was developed as a solution to the complex and error-prone nature of Ethereum addresses. Its open-source protocol allows users to register readable domain names, which can then be linked to wallet addresses, decentralized websites, or other Ethereum-based services.
ENS Labs has been actively working to expand the protocol and make it more accessible. In May 2024, the company announced its migration to a layer-2 network, a critical move designed to lower gas fees and improve transaction speeds. The layer-2 integration not only makes ENS names more affordable but also positions the company as a forward-thinking player in the rapidly evolving blockchain landscape.
However, ENS Labs has not been without its challenges. The company has found itself embroiled in a legal battle over intellectual property with Unstoppable Domains, a competing blockchain domain provider. In May 2024, ENS Labs filed a petition challenging the validity of a patent awarded to Unstoppable Domains by the US Patent and Trademark Office. According to ENS Labs, the patent does not present any novel contributions and infringes on the open-source technology that ENS developed.
The dispute has garnered significant attention in the blockchain community, as it touches on broader questions of intellectual property rights in the open-source world. ENS Labs maintains that its challenge is essential to ensuring the decentralized web remains a “collaborative space” where innovation can flourish without restrictive patents.
What This Means for the Future of Crypto Payments
The integration of ENS names into Venmo and PayPal marks a significant milestone for the cryptocurrency industry. By bringing blockchain technology to the masses in a user-friendly format, PayPal and Venmo are effectively bridging the gap between traditional payment systems and decentralized financial infrastructure.
This collaboration not only opens the door for millions of new users to experience the benefits of cryptocurrency, but it also serves as a model for future integrations between Web2 and Web3 systems. The ability to send crypto as easily as sending an email could be the key to unlocking widespread adoption, particularly among those who have been hesitant to engage with the technology due to its perceived complexity.
For ENS Labs, this integration is just one of many steps toward realizing its vision of making blockchain technology more accessible. The company’s ongoing work in lowering gas fees, improving transaction speeds, and simplifying the user experience will continue to play a critical role in shaping the future of decentralized finance.
As PayPal and Venmo users start to embrace the simplicity of ENS names, the cryptocurrency industry is likely to see an influx of new participants who were previously deterred by the complexities of wallet addresses and blockchain transactions. The growing ecosystem of ENS and PayPal’s PYUSD stablecoin integration points to a future where crypto is no longer confined to niche communities but becomes a widely accepted form of payment.
This article was originally Posted on Coinpaper.com
