Tornado Cash’s TORN Token Surges 10% Amidst Proposal to Reverse Recent Attack

The post Tornado Cash’s TORN Token Surges 10% Amidst Proposal to Reverse Recent Attack appeared first on Coinpedia Fintech News

The operations, funds, and future plans of privacy-focused crypto mixer Tornado Cash were compromised over the weekend when an unidentified attacker or group gained control of the DAO responsible for its management.

During the incident, the attacker introduced a malicious proposal containing hidden code that allowed them to generate fraudulent votes. These votes can now be utilized to influence certain aspects of Tornado Cash, including the handling of torn (TORN) tokens stored in the main governance contract or the withdrawal of locked torn tokens.

Following this attack, the price of TORN plummeted by over 40%. However, there have been some updates from the attackers, which sent the price of TORN up by 10%.

Tornado Cash attackers put forth a proposal

The Tornado Cash token (TORN) has experienced a 10% increase following the submission of a proposal by a wallet address associated with a recent attack on the decentralized autonomous organization’s (DAO) governance state. The proposal aims to reverse the malicious alterations made during the attack.

According to user Tornadosaurus-Hex’s message in the community forum, the attacker is most likely to execute the attack as the attacker has posted a new proposal to restore governance.

Tornadosaurus-Hex stated that the attacker is planning to revert the TORN tokens they acquired, which granted them a significant portion of the governance votes, back to zero. Based on the attacker’s current holdings of TORN governance tokens, it appears likely that the proposal will pass once the voting period concludes on May 26. 

Following these updates, the price of TORN spiked by 10% and is currently trading at $4.77, according to CoinGecko data. The price went to a 24-hour high of $4.92 before falling to its current price. TORN is down by 24% in the last seven days. The token was trading at a high of $7.16 on May 20, 2023. However, the recent attack has affected the price, which has plummeted hard.