In a positive turn of events, the governance tokenholders of Tornado Cash will soon regain control over the protocol’s operations. A proposal, unexpectedly put forward by the attacker, has been approved by a significant majority of token votes, paving the way for the community to regain authority and steer the protocol towards recovery and enhanced security measures.
The successful passing of the proposal occurred on May 26, with an overwhelming 517,000 token votes in favor and none opposing it. This outcome brings a swift conclusion to the governance takeover, which fortunately did not directly impact the protocol but resulted in the theft of specific governance tokens.
The attacker orchestrated a takeover of Tornado Cash’s governance system, implementing a malicious proposal that granted them 1.2 million votes. By leveraging this substantial voting power, they were able to pass additional proposals and gain control over previously vested governance tokens. Their actions manipulated the governance structure, leading to a transfer of authority in their favor.
Interestingly, just a few hours after the hack, the attacker surprised the Tornado Cash community by reaching out and presenting a proposal aimed at restoring governance control. This unexpected gesture raised questions about the attacker’s intentions and motivations, prompting further scrutiny.
According to reports, the attacker managed to steal 483,000 Tornado Cash (TORN) tokens and converted the majority of them into 485 Ether (ETH), equivalent to approximately $890,000. The remaining 39,000 TORN, valued at around $160,000, was retained. To obscure the origin of the funds, a portion of the ETH was cleverly routed through Tornado Cash, adding an extra layer of anonymity to the transaction.
It’s worth noting that Tornado Cash, an Ethereum-based crypto mixing service, faced controversy when it was sanctioned by the United States Treasury in August 2022, following allegations of money laundering.
The approval of the proposal marks a significant step towards restoring governance control and reinforces the resilience of the Tornado Cash community in overcoming challenges and safeguarding the protocol’s future.