Tornado Cash Token Soars 10% After Attacker Proposes to Return Funds

Tornado Cash’s (TORN) token has risen by 10% after an attacker submitted a proposal to undo the attack that drained $80 million worth of ETH from the protocol.

The attack took place on May 17, when an attacker exploited a vulnerability in Tornado Cash’s smart contracts to drain 800,000 ETH from the protocol. The attacker then used the ETH to purchase TORN tokens, which caused the price of the token to plummet.

TornadoCash attacker deployed new proposal that, if executed, would seemingly revert the damage done to the Governance functionality. Either they're giga trolling or it will end up being an expensive but not disastrous lesson in Governance security.https://t.co/QMWYFsi8kP

— 0xdeadf4ce (@0xdface) May 21, 2023

In the wake of the attack, the Tornado Cash team has been working to fix the vulnerability and restore the funds to the affected users. The team has also been working to improve the security of the protocol.

On May 20, the attacker submitted a proposal to undo the attack. The proposal would require the Tornado Cash community to vote to approve the refund.

The proposal has received widespread support from the Tornado Cash community. As of May 21, the proposal has over 90% support from the community.

If the proposal is approved, the attacker will return the stolen ETH to the affected users. The attacker will also forfeit the TORN tokens that they purchased with the stolen ETH.

The recovery of the stolen ETH would be a major victory for the Tornado Cash community. It would also send a strong message to other attackers that they will not be able to profit from exploiting vulnerabilities in Tornado Cash’s smart contracts.

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