Governance token holders of Tornado Cash are set to regain control over the protocol’s operations, as an unexpected proposal by the individual responsible for the recent attack was approved. With a total of 517,000 token votes in favor, the community is now able to regain authority and steer the protocol towards improved security measures.
Earlier, an attacker took over Tornado Cash’s governance system and manipulated the governance structure. Gaining 1.2 million votes, they proceeded to pass additional proposals and seize control over previously vested governance tokens. However, just hours after the hack, the attacker made contact with the Tornado Cash community and presented a new proposal to restore the governance control.
Data journalist Martin Lee from crypto analytics site Nansen reported that the attacker managed to pilfer 483,000 TORN tokens. They then conducted a series of swaps, converting the majority of the stolen tokens into 485 ETH, equivalent to approximately $890,000. The remaining 39,000 TORN were valued at around $160,000. To disguise the origin of the funds, a portion of the ether was routed through Tornado Cash, adding an additional layer of anonymity.
Tornado Cash, an Ethereum blockchain-based mixing service, was sanctioned by the U.S. Treasury in August 2022 due to allegations of being utilized for money laundering purposes. The recent events surrounding the takeover and subsequent restoration of governance control highlight the continuous challenges faced by decentralized finance (DeFi) protocols in maintaining security and safeguarding against potential vulnerabilities.
In conclusion, while the Tornado Cash community has regained control over the protocol thanks to the attacker’s surprising proposal, the incident serves as a reminder of the constant threats and vulnerabilities faced by DeFi projects. Efforts to enhance security measures and prevent unauthorized access must be a top priority for all projects operating within this rapidly evolving space.