Tornado Cash governance control set to be restored. The protocol’s operations will soon be under the control of Tornado Cash’s governance tokenholders, all thanks to an unexpected proposal made by the attacker. This new development empowers the community to regain authority and guide the protocol towards recovery and enhanced security measures.
Tornado Cash governance control set to be restored as voters approve proposal
The unexpected proposal made by the attacker to restore control over the protocol’s operations has resulted in a significant development. This development enables the community to regain authority and guide the protocol towards recovery and enhanced security measures.
The proposal, which passed successfully on May 26, garnered 517,000 token votes in favor with no opposition. Fortunately, the governance takeover did not affect the protocol itself but did result in the theft of certain governance tokens. This resolution brings a swift conclusion to the situation.
Through a successful takeover of the protocol’s governance system, the attacker executed a cunning plan by introducing a malicious proposal that granted them 1.2 million votes. With this significant voting power, they proceeded to pass additional proposals, ultimately gaining control over previously vested governance tokens. By employing these tactics, they manipulated the governance structure, resulting in a transfer of authority in their favor.
In an astonishing twist of events, the attacker surprisingly reached out to the Tornado Cash community mere hours after the hack occurred. They presented a proposal claiming to aim at restoring governance control, catching many off guard. This unexpected action generated curiosity and sparked a deeper examination of the attacker’s intentions and motivations.
According to Martin Lee, a data journalist from the crypto analytics site Nansen, the attacker successfully obtained 483,000 Tornado Cash (TORN) tokens. They then proceeded to execute a series of swaps, converting the majority of the stolen tokens into 485 Ether, equivalent to approximately $890,000.
Through this strategic maneuver, they were left with 39,000 TORN, valued at around $160,000. To obscure the source of the funds, a portion of the ETH was cleverly routed through Tornado Cash, introducing an additional layer of anonymity to the transaction.
Tornado Cash, the Ethereum blockchain-based crypto mixing service, faced controversy when it was officially sanctioned by the United States Treasury in August 2022. These sanctions were imposed due to allegations of the protocol being exploited for money laundering purposes.
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