Tornado Cash governance controls set to be restored as token vote approves proposal

Tornado Cash’s governance token holders will soon gain control over the operation of the protocol, thanks to an unexpected proposal put forward by the person responsible for the attack. This allows the development community to gain authority and drive the protocol towards recovery and better security measures.

on 26 May Proposal Successfully passed to restore control to the original governance holders of Tornado Cash. A total of 517,000 token votes were in favor of the proposal, with none against. At the time of writing this news, there were 2 hours 40 minutes left for the hanging. This resolution brings a quick conclusion to a governance takeover, which fortunately, does not affect the protocol itself, but does lead to the theft of some governance tokens.

By successfully orchestrating a takeover of the protocol’s governance system, the attacker introduced a malicious proposal that earned them 1.2 million votes. Taking advantage of this significant voting power, they proceeded to pass additional resolutions, eventually taking control of the previously vested governance tokens. His tactics allowed him to manipulate the governance structure, resulting in power shifting in his favor.

In a surprising turn of events, just hours after the hack, the attacker unexpectedly got in touch with the Tornado Cash community, presenting a new proposal aimed at restoring governance control. This unexpected gesture took many by surprise, raising curiosity and prompting further investigation into the attacker’s intentions and motivations.

As pointed out by Martin Lee, a data journalist at crypto analytics site Nansen, the attacker managed to steal A significant amount of 483,000 TORN tokens. Thereafter, he conducted a series of swaps, converting most of the stolen tokens into 485 ETH, equivalent to approximately $890,000. This strategic maneuver left him with 39,000 TORN, worth approximately $160,000. To obscure the origin of the funds, a portion of the Ether was cleverly sent through Tornado Cash, adding an extra layer of anonymity to the transactions.

Connected: Crypto Hacks Are Falling in Q1, But There’s a ‘Temporary Relief’ – Blockchain Firm

Tornado Cash, an Ethereum blockchain-based mixing service, found itself embroiled in controversy when it was officially approved by the US Treasury in August 2022. The sanction stems from allegations that the protocol was used for money laundering purposes.

magazine: Should crypto projects negotiate with hackers? Perhaps