Tag: Cash

Hacker drops control over Tornado Cash as they use it to wash stolen funds

A hacker who recently took over the cryptocurrency mixer Tornado Cash has given up control while still using the protocol to launder the digital tokens stolen in the attack. Hacker uses Tornado Cash to wash stolen tokens In the incident, the attacker obtained 483,000 TORN coins, the protocol’s native currency, and later converted a sizable amount of the loot into ETH.  This was due to exploitation of a weakness in the Tornado Cash governance system, which is generally run by the crypto community. The user has also reportedly used the…

Tornado Cash governance control set to be restored as voters approve proposal

boss

The governance tokenholders of Tornado Cash will soon regain control over the protocol’s operations, thanks to an unexpected proposal put forward by the attacker. This development allows the community to regain authority and steer the protocol toward recovery and improved security measures. On May 26, the proposal to restore control to the original governance tokenholders of Tornado Cash passed successfully. A total of 517,000 token votes favored the proposal, with none opposing it. This resolution brings a swift conclusion to a governance takeover that, fortunately, did not impact the protocol…

Wallet drainer moves funds to Tornado Cash

Crypto security firm CertiK has warned that a known wallet drainer has moved funds into sanctioned crypto tumbler Tornado Cash. In a May 27 alert, CertiK stated that two externally owned addresses (EOAs), 0x546 and 0x108, deposited 20 ether (ETH) with a market value of $36,473 into Tornado Cash. Source: CertiK on Twitter Per the alert, the funds came from a wallet drainer, a malicious file that automatically moves crypto from the wallets of unsuspecting visitors to phishing sites. While CertiK claimed the address from which the funds originated was…

US Treasury challenged over Tornado Cash sanctions

In a bid to reverse sanctions against Ethereum’s privacy service, Tornado Cash, plaintiffs question the U.S. Department of Treasury’s interpretation of property rights in smart contracts and the application of the first amendment’s free speech clause. In a fresh legal development, the U.S. Department of Treasury is confronted with a lawsuit pertaining to sanctions levied against ethereum mixing service, Tornado Cash. The plaintiffs argue that the case focuses on ensuring the Treasury’s adherence to fundamental principles of the International Emergency Economic Powers Act (IEEPA) and the Free Speech Clause of…

Tornado Cash attacker to potentially giveback governance control, proposal reveals

boss

Just a day after an attacker sparked community-wide panic after hijacking the Tornado Cash governance, a new proposal hints at the possible restoration of the state of governance. On May 21, the passing of a malicious proposal allowed an attacker to gain complete control over Tornado Cash’s governance. With total control over the governance of the decentralized crypto mixer, the attacker was in a position to inflict massive losses considering they could withdraw all of the locked votes, drain all of the tokens in the governance contract and brick the…

Attacker Takes Over Tornado Cash DAO With Vote Fraud, Token Slumps 40%

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity…

Attacker hijacks Tornado Cash governance via malicious proposal

boss

Adding to the existing roadblocks of the decentralized crypto mixer Tornado Cash, an attacker managed to gain full control of the governance through a malicious proposal.  On May 20 at 3:25 ET, an attacker successfully granted 1.2 million votes to a malicious proposal. Given that the proposal received more than 700,000 legitimate votes, the attacker gained total control over Tornado Cash governance. On 2023/05/20 at 07:25:11 UTC, Tornado Cash governance effectively ceased to exist. Through a malicious proposal, an attacker granted themselves 1,200,000 votes. As this is more than the…