The TORN token of Tornado Cash has experienced a 10% increase following the submission of a proposal by an address associated with a recent attack on the decentralized autonomous organization’s (DAO) governance system. However, not everyone in the community views this proposal as a benevolent plan.
In the Tornado Cash community forum, user Tornadosaurus-Hex revealed that the attacker had posted a proposal to restore the governance state. There is a strong possibility that the attacker will execute the proposal, according to Tornadosaurus-Hex. The attacker is reverting the TORN tokens they acquired, which gave them significant control over the governance votes, back to zero.
With the attacker’s substantial holdings of TORN governance tokens, the proposal is likely to pass when the voting period ends on May 26. However, the exact timing of the proposal’s execution remains uncertain. Once the proposal is approved, the malicious code integrated into the protocol, enabling the attacker to steal voting power, will be removed, and the governance of Tornado Cash’s DAO will be returned to token holders.
As a result, TORN experienced a temporary surge of up to 10% in value, as reported by CoinGecko data, before settling back down.
An active member of the TORN community, 0xdeadf4ce, raised the possibility that this could be an elaborate scheme to manipulate the token’s price and increase their own holdings at a discounted rate.
Tornadosaurus-Hex emphasized the significance of the proposal, even though the community does not have a choice in accepting it.
It is worth noting that structural attacks on DAOs and DeFi protocols, which involve manipulating the code instead of exploiting it, have resulted in legal consequences. However, the attacker behind this exploit might be relying on the fact that Tornado Cash was recently designated as a sanctioned entity.