Key takeaways:
- The proposal to restore governance control to Tornado Cash token holders has garnered an impressive 517,000 votes in favor, with no votes against it.
- This remarkable outcome suggests a pivotal milestone in the recovery of Tornado Cash, as token holders actively regain control over governance.
The decentralized privacy protocol Tornado Cash is poised to regain its governance control
after a token vote that garnered strong community support. With overwhelming backing for the proposal, this marks a significant milestone in restoring the protocol’s governance functionality.
This step forward gives the community back control over the protocol, allowing it to move towards recovery and better security measures.
On May 26, it was decided to give Tornado Cash’s original governance token holders control once again. The proposal received a total of 517,000 symbolic votes in favour and 0 against.
The conclusion of this event represents a sudden conclusion to a governance takeover that had no impact on the protocol itself but resulted in the theft of governance tokens. The attacker cleverly orchestrated the seizure of the protocol’s governance mechanism, enabling them to submit a malicious proposal that granted them 1.2 million votes.
With this substantial voting power, they successfully passed multiple proposals, ultimately gaining control over the previously vested governance tokens. Through strategic maneuvers, they manipulated the governance framework, leading to a transfer of control in their favor.
Token holders will have an active role in shaping crucial protocol parameters, including fee structures, upgrades, and the development of future features. The transition to decentralized governance aims to promote transparency, inclusivity, and the alignment of interests among all stakeholders.
In a surprising twist of events, the attacker made unexpected contact with the Tornado Cash community shortly after the hack, presenting a proposal aimed at restoring governance control. This unexpected move caught many off guard and sparked curiosity, leading to a closer examination of the attacker’s intentions and motivations. Data journalist Martin Lee, who works for the crypto analytics site Nansen, revealed that the attacker managed to steal 483,000 Tornado Cash (TORN) tokens.
Following the theft, the attacker executed a series of swaps, converting the majority of the stolen tokens into 485 Ethereum (ETH), equivalent to approximately $890,000. This strategic maneuver left them with 39,000 TORN, estimated to have a value of around $160,000.
The developments come almost a month after Leading cryptocurrency exchange Coinbase announced its backing for a legal action against the US Treasury to lift the restrictions on the cryptocurrency mixer Tornado Cash.
