DeFi Protocol Tornado Cash Attacked, $2 Million Worth of TORN Tokens Drained

The price of TORN, the native token of Tornado Cash, has plummeted by more than 50% after an attacker exploited a vulnerability in the Tornado Cash DAO to drain over $2 million worth of TORN tokens.

The attack took place on May 19, 2023, when the attacker exploited a vulnerability in the Tornado Cash DAO to drain over 200,000 TORN tokens. The attacker then sold the TORN tokens on the open market, which caused the price of TORN to plummet.

On 2023/05/20 at 07:25:11 UTC, Tornado Cash governance effectively ceased to exist. Through a malicious proposal, an attacker granted themselves 1,200,000 votes. As this is more than the ~700,000 legitimate votes, they now have full control.https://t.co/nY87XmrYgT pic.twitter.com/h9qjc3xRqz

— samczsun (@samczsun) May 20, 2023

The Tornado Cash DAO has since been patched, and the attacker’s funds have been frozen. However, the attack has caused significant damage to the TORN ecosystem. The price of TORN is still recovering, but it is unclear when the price will return to its previous levels.

The attack on Tornado Cash is a reminder of the risks associated with DeFi protocols. DeFi protocols are often complex and have vulnerabilities that can be exploited by attackers. Investors should carefully research DeFi protocols before investing in them.

TagsCrypto