Tornado Cash (Torn) down 27% after hacker attack Tornado Cash (Torn) down 27% after hacker attack

Tornado Cash (TORN) has experienced a sudden drop in its market capitalization over the past few hours following the news that the DeFi protocol is suffering. crypto exploitation late tomorrow According to data from coinmarketcapTornado Cash is down 28.25% over the past 24 hours, although this only represents a retracement value.

Following the news of the TORN attack, the coin initially fell by over 60% before finding support around the $3.86 price area. Since then, TORN has shown some upward momentum, but not enough to cover previous losses.

Torn Regime Breach: $2M Stolen

Through a malicious governance proposal, a hacker gained control of Tornado’s cash governance, allotting himself 1,200,000 votes.

According to Chinese journalist Colin WuThe hacker used his newly gained control to move a total of 483,000 TORN out of the Tornado Cash governance vault, worth approximately $2 million at the current market price of $4.5.

The hacker began by depositing 6,000 TORN on the Bitrue exchange and swapped the remaining 379,300 TORN on-chain for 375ETH. As of now, there is no official statement from Bitru on this development.

The Tornado Cash attacker obtained a total of 483,000 TORN from the Tornado Cash governance vault, and deposited 6,000 TORN into Bitrue; Sold 379,300 TORN on-chain and converted it to 375 ETH (about US$680,000). The price is US$1.8; There are still 97,700 TORN…

— Wu Blockchain (@WuBlockchain) May 21, 2023

In the meantime, all TORN investors have been urged to withdraw all their governance-locked funds from the project developers. In addition, Binance exchange has Suspended TOR is pending resolution of the deposit governance issue.

Due to the circumstances surrounding the protocol, #binance will temporarily pause $ torn Submit till further notice.

– Binance (@binance) May 21, 2023

For now, it is unknown how long it may take for the TORN developers to regain control of the governance system and recover the stolen loot. Thus, TORN investors are advised to keep a close eye on any latest developments.

But write time, TORN is trading at $4.5 with a gain of 1.5% in the last hour. Looking at its broader performance, the DeFi token leaves a lot to be desired with losses of 30.6% and 48.9% respectively over the past 14 and 30 days.

TORN Trading At $4.5837 | Source: TORNUSDT Chart on Tradingview.com

Tornado Cash becomes the target of crypto hackers

Interestingly, prior to yesterday’s heist, Tornado Cash played a different role in the crypto heist rather than being the target.

TORN Protocol operates as a decentralized, non-custodial cryptocurrency tumbler that “combines potentially identifiable or tainted cryptocurrency funds with others” in order to cover the original traces of such funds.

Because of this service, the DeFi project served as a “money laundering” tool in a couple of cryptocurrency heists, most notably $625 Million Ronin Exploited In 2022,

About 2000 ETH – worth around $2 million – was transferred to Tornado Cash following the heist. After this incident, TORN was blacklisted By the US Office of Foreign Assets Control (OFAC), banning all US citizens from joining the Protocol.

Other popular robberies include the use of Tornado Cash to recover an increasing portion of the stolen money. $200 million stolen from Euler Finance And this $28 million derbit hack in 2022.

– Featured Image: Chart from Forbes, Tradingview