Tornado Cash Hacked: Attacker Tables Proposal to Regain Control
• On May 20, the crypto mixer platform Tornado Cash was attacked resulting in a loss of control over the protocol.
• The attacker tabled a proposal that would help the DAO regain control, but it could also withdraw all the locked votes or drain tokens from the governance contract.
• Since news of the exploit surfaced, TORN’s price dropped 36%, but news of the attacker’s proposal buoyed prices and resulted in a 9% daily high.
Tornado Cash Hacked
On May 20, crypto mixer platform Tornado Cash was attacked resulting in a loss of control over the protocol. The attacker tabled a proposal that would help the DAO regain control, but it could also withdraw all the locked votes or drain tokens from the governance contract.
Paradimn Researcher Shares Update
A Paradimn researcher shared that hackers drained the locked votes from the Tornado Cash contract and noted that Nova was at risk too if they upgraded their contract. Twitter user 0xdeadf4ce suggested either “giga trolling” or “a disastrous lesson in governance security” as possible reasons for attack. Community member Tornadosaurus-Hex noted that while malicious elements might be involved, there is still some hope for recovery with new proposal put forward by Attacker.
Price Manipulation Suspected
The draining of locked votes has lead to speculation that price manipulation could be behind this attack since TORN’s price dropped 36% on 21st May to form a daily low near $3.68 after news broke out about hacker attack.
Tornado Cash & Security Exploits
Tornado cash has often been part of most crypto-related exploits as its services are used to anonymize loot taken by attackers during these attacks. This incident serves as another reminder to users and platforms alike to stay vigilant against security threats and breaches in order to protect their funds and data from any potential harm or theft.
The latest proposal put forward by attackers have raised hopes for recovery among community members which ultimately resulted in a 9% rally for TORN’s price on 21st May 2021. While this incident serves as an example of potential security exploit, it can also serve as an opportunity for users and platforms alike to review existing security protocols and take necessary measures towards safeguarding their funds against future attacks or breaches .