Tornado Cash attacker considers returning governance control

TL;DR Breakdown

  • Tornado Cash’s governance was hijacked by a malicious attacker.
  • Community member Tornadosaurus-Hex tried to limit damage through a withdrawal proposal.
  • The attacker unexpectedly proposed to return the governance control.
  • Skepticism remains about the attacker’s intent, possibly to inflate TORN token prices.

In an unexpected twist to an alarming situation, the individual who recently assumed control of Tornado Cash’s governance through a malicious cyber-attack has hinted at returning authority to its rightful place.

Notwithstanding the controversial nature of the proposal, the Tornado Cash community finds itself with few alternatives, sparking concerns and debates amongst members.

What happened to Tornado Cash?

On May 21st, panic struck the Tornado Cash community as a malicious entity effectively took over governance. The hijacker had the power to inflict severe damage by withdrawing all locked votes, draining tokens from the governance contract, and compromising the router.

This unanticipated situation caused widespread concern within the community, leaving many to question the security and stability of the Tornado Cash platform.

During this critical period, community member Tornadosaurus-Hex, commonly referred to as Hex, stepped up to mitigate potential fallout. Hex submitted a subsequent proposal urging all members to withdraw funds locked in governance.

Despite this quick response, Hex, along with many others, expressed uncertainty about its effectiveness, given the perpetrator’s firm control over governance.

A change of heart?

To the community’s astonishment, the attacker made contact a few hours later, submitting a new proposal which suggested a willingness to restore governance control to its original state.

Hex relayed the attacker’s plan to the Tornado Cash community, stating, “The attacker posted a new proposal to restore the state of Governance. I think that there is a good chance he’s going to execute it.”

Hex further indicated that while the community has no real alternative but to accept the hacker’s proposed course of action, their due diligence to verify storage layouts appears valid.

However, this unexpected turn of events left some community members skeptical, with speculation that the attacker’s motive might be to boost the TORN token’s price before selling their holdings.

Market reaction and community speculations

In an encouraging response to the unusual situation, the Tornado Cash token (TORN) saw a 10% increase following the attacker’s proposal to reverse their actions.

The initiative implies the potential return of the TORN tokens that the hacker allocated to themselves, effectively restoring the governance votes balance.

Based on the considerable amount of TORN governance tokens held by the attacker, it is highly likely that the proposal will be approved once the voting period ends on May 26th.

The execution timeline remains unclear, but the proposal’s passage would eliminate the malicious code that allowed the hijacker to usurp voting power. Consequently, governance control of Tornado Cash’s Decentralized Autonomous Organization (DAO) would revert to token holders.

Despite the immediate positive market response, community member 0xdeadf4ce raised concerns about a potential “gigatroll” scheme, suggesting the incident could have been designed to depress token prices before buying in at a discount.

While the community remains divided over the attacker’s intentions, they unanimously agree on the importance of this proposal in determining the future of Tornado Cash governance.

The recent incident, however disturbing, can be seen as a wake-up call for the broader cryptocurrency ecosystem. Interestingly, statistics show that crypto hacks in general have seen a decline in the first quarter of 2023, providing some level of comfort for investors and stakeholders in the space.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:Tornado Cash attacker considers returning governance control

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年5月23日 18:31
Next 2023年5月23日 20:37

Related articles

  • What a crypto fraud family affair! An in-depth look at SBF’s family involvement in FTX.

    TL;DR Breakdown Sam Bankman Fried (SBF) remains one of the worst crypto villains in the crypto industry, and as time goes by, evidence shows that his family played a vital role in the collapse of FTX. At the start of his career, SBF relied on his family to run FTX. His father, Joseph, played a role in various FTX fields, while his mother, Barbra, prided herself as her son’s partner in crime and seemed to have a hand in the company affairs. Reports have it that SBF’s family has constantly tried to jeopardize the case by paying off key witnesses. Description The Sam Bankman Fried (SBF) trial is now a family affair as the accused parents are now suspected of also being involved with their son’s activities of defrauding the multi-billion crypto exchange. SBF’s parents, Joseph Bankman and Barbara Fried have offered their son unwavering support as he faces multiple counts of money laundering and fraud … Read more The Sam Bankman Fried (SBF) trial is now a family affair as the accused parents are now suspected of also being…

    Article 2023年9月24日
  • Community-Led Developments Propel Terra Luna Classic’s Tokens Amid Price Surges

    TL;DR Breakdown Terra Luna Classic community votes in favor of a proposal to create a community-owned wallet, empowering stakeholders to govern the wallet’s infrastructure and reduce reliance on external entities. Following the proposal’s approval, LUNC and USTC tokens experienced substantial price surges, showcasing growing investor confidence in the platform’s decentralized developments. Description In a groundbreaking move, the Terra Luna Classic (LUNC) community has voted to take ownership of the wallet infrastructure development. The proposal, presented by core developer Joint L1 Task Force (L1TF) and spearheaded by LUNC validator Happy Catty Crypto, has officially passed after receiving overwhelming support from the community. This decision marks a significant milestone … Read more In a groundbreaking move, the Terra Luna Classic (LUNC) community has voted to take ownership of the wallet infrastructure development. The proposal, presented by core developer Joint L1 Task Force (L1TF) and spearheaded by LUNC validator Happy Catty Crypto, has officially passed after receiving overwhelming support from the community. This decision marks a significant milestone in the ongoing efforts to decentralize and strengthen the Terra Luna Classic ecosystem. The proposal,…

    Article 2023年7月23日
  • Meta to fight EU antitrust charges at today’s hearing

    TL;DR Breakdown Meta is contesting EU antitrust charges at a closed hearing today. The EU alleges Meta unfairly ties its social network to its classified ads service and imposes unfair conditions on services. If found guilty, Meta could face a fine of up to 10% of its global turnover and be ordered to change its business practices. Meta’s new app, Threads, is not yet available in the EU due to the bloc’s stringent privacy regulations. Description Facing the prospect of a hefty fine, Meta, the parent company of Facebook, heads to a closed-door hearing today to refute European Union (EU) antitrust allegations. The EU accuses the tech giant of leveraging its social network, Facebook, to give its classified advertisements service, Facebook Marketplace, an undue edge in the market. Meta Stands Against … Read more Facing the prospect of a hefty fine, Meta, the parent company of Facebook, heads to a closed-door hearing today to refute European Union (EU) antitrust allegations. The EU accuses the tech giant of leveraging its social network, Facebook, to give its classified advertisements service, Facebook Marketplace,…

    Article 2023年7月14日
  • Stronghold company requests the use of tire-derived fuel for crypto mining in Pennsylvania

    TL;DR Breakdown Pennsylvania-based cryptocurrency mining company, Stronghold Digital Mining, is in the process of seeking approval to utilize shredded tires for generating up to 15% of its energy at its Panther Creek plant in Nesquehoning. Stronghold cites the approval granted by the United States Environmental Protection Agency (EPA) for this energy source’s use in other industrial facilities within the state of Pennsylvania.  Local environmental advocates are questioning the legitimacy of these facilities and are adamant that granting such permission to a crypto-mining operation should not be entertained. Description Pennsylvania-based cryptocurrency mining company, Stronghold Digital Mining, is in the process of seeking approval to utilize shredded tires for generating up to 15% of its energy at its Panther Creek plant in Nesquehoning. However, this move is met with opposition from local environmental activists who are gearing up to challenge the initiative. While Stronghold filed … Read more Pennsylvania-based cryptocurrency mining company, Stronghold Digital Mining, is in the process of seeking approval to utilize shredded tires for generating up to 15% of its energy at its Panther Creek plant in Nesquehoning. However,…

    Article 2023年8月30日
  • How EU’s new rules force Big Tech into legal bind

    Description The EU has tightened the reins on the tech behemoths, pushing them into a potential legal quagmire. New regulations rolled out by the European body have effectively pulled the rug out from under companies like Apple, Google, TikTok, and WhatsApp, spotlighting them in the European quest to leash the unchecked power of big tech. Big … Read more The EU has tightened the reins on the tech behemoths, pushing them into a potential legal quagmire. New regulations rolled out by the European body have effectively pulled the rug out from under companies like Apple, Google, TikTok, and WhatsApp, spotlighting them in the European quest to leash the unchecked power of big tech. Big Tech’s New Dance with EU Rules The European juggernaut’s latest initiative, the Digital Markets Act (DMA), unfurled its list of “gatekeepers”, comprising of world-renowned tech giants: Apple, Microsoft, Google, Amazon, Meta, and ByteDance, the company behind the popular TikTok platform. And let me tell you, the lineup is both impressive and intimidating. These “gatekeepers” aren’t getting off easy. The EU demands these services become more interoperable…

    Article 2023年9月7日
TOP