In a surprising turn of events, the Tornado Cash token (TORN) experienced a 10% increase following a proposal submitted by a wallet address associated with a recent attack on the platform’s decentralized autonomous organization (DAO)’s governance state. The aim of the proposal is to reverse the malicious changes implemented by the attacker. According to user Tornadosaurus-Hex in the Tornado Cash community forum, the attacker posted the new proposal to restore the state of governance, adding that there is a “good chance” that the attacker would execute it.
It appears that the attacker is attempting to revert the TORN tokens they assigned to themselves, which provided them with a controlling share of the governance votes, back to zero. As it stands, the proposal seems likely to pass when voting closes on May 26. However, it remains unclear when the action will be executed. Upon the proposal’s passing, the malicious code integrated by the attacker, enabling them to steal voting power from others, will be removed. Consequently, the governance of Tornado Cash’s DAO will be returned to token holders.
In response to this development, the value of the TORN token rose by as much as 10% before slightly decreasing, based on CoinGecko data. There are some speculations among the Tornado Cash community members, such as 0xdeadf4ce, suggesting that this could all be a “gigatroll” aimed at driving down the token’s price, allowing the attacker to increase their holdings at a lower cost.
Tornadosaurus-Hex underscored the significance of the present proposal, stating that despite having no choice in the matter, it is still important. Attacks on DAOs and decentralized finance (DeFi) protocols, which differ from hacks that involve breaking code rather than exploiting it, have resulted in charges in the past. However, the attacker behind this exploit is likely banking on the fact that Tornado Cash was recently designated as a sanctioned entity.
This incident highlights the complexities and uncertainties of the burgeoning blockchain and cryptocurrency industry. While innovative and promising, it remains essential for investors and users to stay vigilant and informed about potential risks and pitfalls within the world of decentralized technology. As the situation unfolds, it serves as a reminder that security, transparency, and integrity must continue to be prioritized in the ever-evolving DeFi landscape.