Tornado Cash governance token holders will soon regain control of the protocol’s operations, thanks to an unexpected suggestion made by the attacker. This development allows the community to regain power and direct the protocol towards recovery and improved security measures.
On May 26, A.J an offer to successfully regain control of Tornado Cash’s original governance token holders. A total of 517,000 token votes supported the motion, with none opposing it. This decision brings a quick result of the governance takeover process, which, fortunately, did not affect the protocol itself, but resulted in the theft of specific governance tokens.
By successfully orchestrating a takeover of the protocol management system, the attacker maneuvered a malicious proposal that gave them 1.2 million votes. Taking advantage of this significant voting power, they passed additional proposals, eventually gaining control of previously acquired governance tokens. Their tactics allowed them to manipulate the ruling structure, shifting power in their favour.
In a surprising turn of events, a few hours after the hack, the attacker unexpectedly contacted the Tornado Cash community, making a proposal allegedly aimed at regaining control of governance. This unexpected gesture surprised many, piqued their curiosity and prompted further scrutiny of the attacker’s intentions and motives.
As Martin Li, a data journalist from the crypto-analytics website Nansen, reports, the attacker was able to He steals 483,000 Tornado Token Cash (TORN). Then, they conducted a series of swaps, converting the majority of the stolen tokens into 485 ether (ETH), worth approximately $890,000. This strategic maneuver left them with 39,000 torne, valued at about $160,000. To hide the source of the funds, a portion of the ETH was cleverly funneled through Tornado Cash, adding an extra layer of anonymity to the transaction.
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Tornado Cash, a cryptocurrency mixing service based on the Ethereum blockchain, was embroiled in controversy when it was formally sanctioned by the US Treasury Department in August 2022. The penalties stemmed from allegations that the protocol had been used for money laundering.
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