Tornado Cash Hacker Proposes Governance Restore Plan
The Tornado Cash hacker has put forward a proposal to reset the TORN governance tokens used in the hack, resulting in a 10% increase in the token’s price. The proposal is awaiting approval through a voting process scheduled to end on May 26. However, there are doubts among users regarding the hacker’s sincerity, with suspicions of a potential price manipulation scheme. Read complete article below.
After the Tornado Cash hacker proposed a fresh plan to restore control of the decentralized autonomous organization, the price of TORN increased by as much as 10%. According to one post on the Tornado Cash forum, the hacker is likely to go through with the plan. The hacker wants to reset to zero the TORN governance tokens they used to hack Tornado Cash.
Given the attacker’s large supply of TORN governance tokens, the proposal will be approved when voting ends on May 26. When exactly the action will take place is yet unknown. Voting rights in the DAO, which were stolen by hackers and merged into Tornado Cash, would be returned to token holders if a motion set for vote on May 26 is approved.
Artificially Inflating Price?
The users still don’t believe the hacker who submitted this idea is serious. Some have speculated that hackers are attempting to artificially inflate the price of the token by spreading this information.
The attackers’ new proposition caused the price of the Tornado Cash token to increase by as much as 10%. The token’s value, however, quickly began to drop again. TORN has dropped about 3% in the past hour, trading at slightly above $2.5 at the time of writing. Yesterday, following the hack, the price of TORN dropped by as much as 50%.
After hearing about the attack on May 21, a few cryptocurrency exchanges, including Binance, temporarily halted TORN deposits as a precaution.