Tornado Cash
Credits: The Cryptonomist

Attacker’s new Proposal Sends Tornado Cash’s TORN Token up 10%

Tornado Cash’s native token, TORN, experienced a significant surge of 10% in value today following an unexpected development. The attacker responsible for the recent exploit on the decentralized privacy protocol has submitted a proposal to undo the attack. This surprising move has created a wave of speculation and debate within the cryptocurrency community.

Tornado Cash, a decentralized protocol built on the Ethereum blockchain, provides users with a privacy-focused solution for conducting anonymous transactions. However, the protocol was recently targeted by an attacker who exploited a vulnerability in its smart contracts, resulting in a significant loss of funds for some users.

Attacker’s Proposal Sparks TORN Token Surge: Seeking Reversal of Malicious Changes

Not everyone in the community agrees that the proposal to revert Tornado Cash’s governance back to token holders is a benevolent plan.

Following a recent attack on Tornado Cash’s decentralized autonomous organization (DAO) governance state, a proposal submitted by a wallet address associated with the attacker aims to reverse the malicious changes. As a result, we saw the tornado cash token up by 10%

User Tornadosaurus-Hex shared in the Tornado Cash community forum that the attacker had posted a new proposal with the intention of restoring the governance state. Furthermore, Tornadosaurus-Hex expressed optimism, stating that there is a “good chance” that the attacker would proceed with executing the proposal.

Surrendering Control of Governance Votes

According to Tornadosaurus-Hex, the attacker is nullifying the TORN tokens they had allocated to themselves, thereby eliminating the controlling stake they possessed in the governance votes.

As the voting deadline of May 26 approaches, it appears highly probable that the proposal submitted by the attacker, considering their substantial holdings of TORN governance tokens, will pass. While the exact timing of the implementation remains uncertain, once the proposal is approved, the malicious code infused into the protocol by the attacker, enabling them to illicitly acquire voting power from others, will be eliminated. Consequently, the governance of Tornado Cash’s DAO will be restored to the token holders.

Relevant Tweets on Tornado cash token up 10%

0xdeadf4ce, a prominent participant in the TORN community, highlighted the possibility that this entire situation could be a deliberate attempt to manipulate the token’s price downward, enabling the individual to accumulate more TORN at a discounted rate.

0xdeadf4ce tweeted: “TornadoCash attacker deployed new proposal that, if executed, would seemingly revert the damage done to the Governance functionality. Either they’re giga trolling or it will end up being an expensive but not disastrous lesson in Governance security.”

The TornadoCash attacker has introduced a new proposal that, if implemented, has the potential to undo the harm caused to the Governance system. However, there are suspicions that this could be an elaborate form of manipulation or it could serve as an expensive but valuable lesson in enhancing Governance security.

Tornadosaurus-Hex emphasized the significance of the proposal, stating that even though the community may not have a say in its acceptance, it holds importance. The attacker behind this exploit is relying on the fact that Tornado Cash was recently designated as a sanctioned entity, as structural attacks on DAOs and DeFi protocols, which involve exploiting code rather than breaking it, have led to legal charges.

In the turn of events, Tornado Cash’s TORN token experienced a notable 10% surge in value as the attacker behind the recent exploit submitted a proposal to undo the damage. This unexpected development sparked speculation and debates within the cryptocurrency community.

As the community evaluates the proposal’s feasibility, the market responded positively to the TORN token’s price increase. The outcome of this proposal will have implications for Tornado Cash and the broader cryptocurrency ecosystem, underscoring the importance of security and collaborative efforts in the decentralized landscape.

Also Read: Federal Reserve Chair Powell Suggests Potential Pause in Interest Rate Hikes.