Hacker Seizes Tornado Cash Governance, TORN Dips 25%

Common crypto mixer Twister Money TORN token dropped by greater than 30% after a malicious participant hijacked its governance to steal over 480,000 tokens from its vault.

In line with on-chain information, the attacker bought 379,000 tokens for 375 ETH (roughly $680,000) and nonetheless has 97,700 TORN tokens of their wallet. Out there data additionally confirmed that the hacker deposited 6,000 tokens on Bitrue.

How the Assault Occurred

Apparently, the hacker deposited their earnings from dumping TORN into the Twister Money mixer, based on a Peckshield report.

Paradigm researcher Samczsun defined that the attacker gained management of Twister Money governance by making a malicious proposal. The hacker falsely claimed that the proposal used the same logic to an earlier proposal.

Nonetheless, unknown to the neighborhood, the attacker had added an emergency-stop perform that allowed them to replace the proposal logic to grant themselves 1.2 million votes.

The hacker gained full management of the DAO as their votes have been greater than the 700,000 official votes of the OFAC-sanctioned crypto mixer members.

What This Means for Twister Money

In line with Samczsun, the attacker’s management over the protocol’s governance might enable them to withdraw locked tokens, brick the router, and drain all of the tokens within the governance contract.

Nonetheless, the governance management doesn’t enable the hacker to empty particular person swimming pools. So, anybody can still use Twister Money to maneuver funds and never fear that the hacker will steal it.

However the attacker can entry Twister Money Nova deployed on the Gnosis chain. It is a proxy administered by governance which implies the attacker can replace the contract to empty all of the ETH within the pool. There are at present 510.8 WETH price over $928,000 within the contract.

TORN Worth Falls

Following the information, the TORN token has fallen by greater than 25% to $4.69 as of press time, based on BeInCrypto data. The assault has additionally pushed the whole market cap of the crypto token to lower than $10 million.

In the meantime, crypto exchanges like Binance have briefly suspended deposits of the token to guard their customers. Nonetheless, Justin Solar’s Huobi and Poloniex preserve that deposits and withdrawals for TORN stay energetic. Solar added:

“We’re carefully monitoring the scenario and will alter our coverage as required to make sure safe. We recognize your understanding and assist.”