Tornado Cash (TORN) has seen a sudden market price drop over the past few hours after news of the DeFi protocol suffering. Exploit encryption late yesterday. according to Data from CoinMarketCapTornado Cash is down 28.25% over the past 24 hours, though that’s only a declining value.
After the news of the TORN attack, the token initially fell more than 60% before finding support around the $3.86 price area. Since then, TORN has made some upward movement, but not enough to cover the previous loss.
TORN Governance System Hacked: $2 Million Stolen
Through a malicious governance proposal, a hacker managed to take control of Tornado’s cash management, allocating 1,200,000 votes to themselves.
according to Chinese reporter Colin Wuthe hacker used his newly acquired control to move a total of 483,000 TORN from the Tornado Cash management vault worth about $2 million at the current market price of $4.5.
The hacker then proceeded to deposit 6,000 TORN on the Bitrue exchange and exchanged the remaining 379,300 TORN on-chain for 375ETH. Currently, there has been no official statement from Bitrue regarding this development.
The Tornado Cash attacker got a total of 483,000 TORN from the Tornado Cash management vault, and deposited 6,000 TORN in Bitrue; He sold 379,300 TORN from the chain and exchanged it for 375 ETH (approximately $680,000 USD). price 1.8 USD; There are still 97,700 TORN…
WuBlockchain May 21, 2023
Meanwhile, all TORN investors have been urged to withdraw all of their governance-restricted funds from the project’s developers. In addition, the Binance exchange has hanging TORN deposits pending resolution of the governance issue.
Because of the circumstances surrounding the protocol, # Finance will pause Torn dollar deposits until further notice.
– Binance (binance) May 21, 2023
At the moment, it is still not known how long it might take for the TORN developers to regain control of the management system and possibly recover the stolen loot. Thus, TORN investors are advised to keep a close eye on the latest developments.
In the writing timeTORN is trading at $4.5, with a gain of 1.5% in the last hour. Looking at its broader performance, the DeFi token leaves much to be desired, with losses of 30.6% and 48.9% in the last 14 and 30 days, respectively.
TORN Trading At $4.5837 | Source: TORNUSDT Chart on Tradingview.com
Tornado Cash has become a target for crypto hackers
Interestingly, before yesterday’s heist, Tornado Cash played a different role in stealing cryptocurrencies than being the target.
The TORN protocol serves as a decentralized alternative to non-custodial cryptocurrency that mixes “identifiable or tainted cryptocurrency funds with other funds” so as to cover the original path of these funds.
Thanks to this service, the DeFi project has served as a “money laundering” tool in two, most notably, cryptocurrency thefts $625 million from the Ronin exploit in 2022.
About 2,000 ETH — worth nearly $2 million at the time — was transferred from the loot to Tornado Cash after the theft. After this event, TORN Blacklisted By the US Office of Foreign Assets Control (OFAC), which prohibits all US citizens from dealing with the protocol.
Other common thefts involving Tornado Cash being used to move part of the stolen money include another $200 million stolen from Euler Finance and the $28 million hacking Derbit in 2022.
Featured image: Forbes, chart from Tradingview