Tornado Cash Regains Administrative Control, Suffers $1 Million Loss

Hacker Tornado Cash made headlines yesterday with a proposal to restore administrative control and return stolen voting power to the previous holders. Notably, the attacker himself put forth the proposal and utilized a significant amount of his stolen voting power to pass it. This proposal also includes the elimination of the vulnerability – the SELFDESTRUCT command that the hacker used to steal power from others.

However, before concluding this chapter of the saga, the cybercriminal successfully seized over 500,000 TORN from the protocol, converted it into 572 ETH, and subsequently funneled the funds back into Tornado Cash to obfuscate the trail. Estimates suggest that the hacker pocketed over $1 million from the attack, according to Fortune.

The price of TORN plummeted by 50% to a mere $3.6 before recovering to around $4.1 at present. However, TORN’s price has remained relatively stable and unresponsive to the recent news, perhaps indicating that investors are cautiously considering the uncertain future of the protocol.

TORN/BUSD 1 hour-chart on Binance | Source: TradingView

In March, a similar incident occurred with Tender.fi, a lending platform that successfully negotiated the recovery of $1.59 million and rewarded the hacker with 62 ETH ($96,500) as part of a bug bounty program. Another notable case involved Euler Finance, which, to date, stands as the most severe hack of 2023. The project managed to retrieve the entire $197 million stolen by hackers.

These high-profile hacks have raised concerns within the crypto community, highlighting the vulnerability of DeFi protocols and the need for robust security measures. While Tornado Cash’s attempt to return stolen voting power may seem like a commendable act, it is crucial to remember that the hacker exploited vulnerabilities for personal gain in the first place.

The cryptocurrency market remains on high alert, with investors and developers seeking ways to fortify their platforms against such attacks. As the industry continues to evolve, it is imperative for participants to prioritize security and stay vigilant to mitigate the risk of future breaches.

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