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- An attacker secured 1.2 million votes for a fraudulent proposal at 3:25 PM ET on May 20.
- The group is seeking Solidity programmers to help preserve the protocol.
Decentralized cryptocurrency mixer Tornado Cash was already facing challenges before an attacker seized full governance control by submitting a fraudulent proposal. The attacker secured 1.2 million votes for the proposal at 3:25 PM ET on May 20. With the proposition receiving over 700,000 valid votes, the attacker now holds complete control over Tornado Cash’s governance.
@samczsun, a researcher from technology investment firm Paradigm, reported that the attacker claimed the fraudulent proposal utilized reasoning similar to one already approved by the community. However, the proposal served a different purpose this time.
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With full control of Tornado Cash’s governance, an attacker could cancel all locked votes, drain the governance contract’s token supply, and potentially break the router. According to @samczsun, the attacker “simply withdrew 10,000 votes as TORN and sold them all.”
Crypto investors should view this attack as a warning to exercise greater caution, particularly when reading proposal descriptions and analyzing their logic. A Tornado Cash community member known as Tornadosaurus-Hex (or Mr. Tornadosaurus Hex) confirmed that all funds locked in governance are at risk of being stolen and urged all members to withdraw such funds immediately.
In addition to efforts to persuade the community to withdraw their contributions, the group attempted to implement a contract capable of reversing the changes.
The group is currently seeking Solidity programmers to assist in preserving the protocol from collapse. Meanwhile, it has been alleged that a former Tornado Cash developer is building a new cryptocurrency mixing service from scratch to address the “critical flaw” in Tornado Cash.
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