News - Cryptomixer Tornado Cash suffers from DAO attack

By Mike Hesp

Cryptomixer Tornado Cash suffers from DAO attack

Scams, crime and fraud
Privacy and security

After a hacker sabotaged the DAO of the controversial cryptomixer Tornado Cash, the price of TORN plummeted nearly 40%.

The DAO of cryptomixer Tornado Cash has been compromised. This is evident from a tweet of an on-chain analyst.

According to the tweet, an unidentified hacker managed to seize control of the organization through a malicious application. As a result, he can now have access to important settlement processes and the DAO's reserves.

In the course of the attack, TORN, the cryptomixer's token, collapsed by 40%. DAO stands for Decentralized Autonomous Organization. It is the most common form of governance for many crypto applications. Members can use tokens to vote on requests for changes to the protocol and organization.

As evidenced by the forum of the Tornado Cash DAO, a new motion has now been submitted to the organization. This proposes to undo the effects of the attack. Strangely, however, the request comes from a wallet address associated with the hacker.

With the hacker holding a large portion of the tokens after the sabotage, DAO members consider a vote for the changes likely.

In their estimation, it was a "troll attack" to enable the hackers to cheaply amass large amounts of the TORN token in the background.

The Tornado Cash platform is considered controversial. While many crypto users see it as a means of maintaining privacy, critics blame its use for money laundering.

Last year, the sanctioning of the protocol by the U.S. Department of Justice turmoil in the industry. Since April of this year, one of the platform's developers has been back on at large after his arrest.

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