Tornado Cash DAO Suffers Major Setback As Fraudulent Votes Lea | CryptoTastic
Tornado Cash DAO Suffers Major Setback As Fraudulent Votes Lead to 40% Token Drop
Over the weekend, an unidentified attacker or group of attackers have taken over The DAO that handles all operations, funds, and future plans of Tornado Cash, a privacy-focused crypto mixer. Decentralized autonomous organizations (DAOs) allow token holders to lock up their holdings as votes to propose changes to a project. These changes can range from deploying treasury funds to purposes that benefit the project to expansion on other networks. The attacker floated a malicious proposal that hid a code function to grant them fake votes that can now be used to handle some aspects of Tornado Cash, such as torn (TORN) tokens held in the main governance contract or withdrawal of locked torn tokens. This was done by putting forth a proposal that imitated an earlier version, except with some malicious code that allowed for the update of logic, giving the attacker access to all governance votes.
