Owners of Tornado Cash governance tokens will soon regain control of the protocol's operations, thanks to an unexpected proposal put forward by the attacker. This development allows the community to regain authority and direct the protocol towards recovery and better security measures.
On May 26, the proposal to restore control to Tornado Cash's original governance token holders was successfully approved. A total of 517,000 symbolic votes favored the proposal and none opposed it. This resolution brings a quick conclusion to a governance takeover that thankfully did not affect the protocol itself, but led to the theft of specific governance tokens.
By successfully orchestrating a protocol governance takeover system, the attacker engineered a malicious proposal that earned them 1.2 million votes. Leveraging this significant voting power, they approved additional proposals and ultimately took control of previously granted governance tokens. Their tactics allowed them to manipulate the government structure, resulting in a transfer of authority in their favor.
In a surprising turn of events, just hours after the hack, the the attacker unexpectedly contacted the Tornado Cash community, presenting a proposal supposedly aimed at restoring control of governance. This unexpected gesture surprised many, piqued curiosity, and prompted increased scrutiny of the attacker's intentions and motivations.
As reported by Martin Lee, a data journalist for cryptanalysis site Nansen, the attacker managed to steal 483,000 Tornado Cash (TORN) tokens. Subsequently, they carried out a series of exchanges, converting the majority of the stolen tokens into 485 Ether (ETH), with an approximate value of $890,000. This strategic move netted them 39,000 TORN, valued at about $160,000. To hide the origin of the funds, a portion of the ETH was cleverly routed through Tornado Cash, adding an additional layer of anonymity to the transaction.
Related: Crypto Hacks Falling In Q1 Are Nothing More Than A 'Temporary Reprieve': Blockchain Firm
Tornado Cash, the Ethereum blockchain-based cryptocurrency mixing service, was embroiled in controversy when it was officially launched sanctioned by the United States Treasury in August 2022. The sanctions stemmed from allegations that the protocol had been used for money laundering.
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