<p class="is-style-lead">A hacker who recently took over the cryptocurrency mixer Tornado Cash has given up control while still using the protocol to launder the digital tokens stolen in the attack.</p>



<h2 class="wp-block-heading" id="hacker-uses-tornado-cash-to-wash-stolen-tokens">Hacker uses Tornado Cash to wash stolen tokens</h2>



<p>In the incident, the attacker obtained 483,000 TORN coins, the protocol&#8217;s native currency, and later converted a sizable amount of the loot into <a href="https://crypto.news/price/ethereum/">ETH</a>. </p>



<p>This was due to exploitation of a weakness in the Tornado Cash governance system, which is generally run by the crypto community.</p>



<figure class="wp-block-image size-full is-resized"><img decoding="async" loading="lazy" src="https://crypto.news/app/uploads/2023/05/image-92.png" alt="Hacker drops control over Tornado Cash as they use it to wash stolen funds - 3" class="wp-image-14162585" width="656" height="692"></figure>



<p>The user has also reportedly used the same cryptocurrency mixer, where funds were removed during the attack, to launder about 472 ETH, worth about $900,000.</p>



<p>The hacker exploited the protocol to hide the money they withdrew during the attack.</p>



<p>This comes after the attacker&#8217;s original fraudulent proposal on May 21, which gave them full control over Tornado Cash&#8217;s decentralized <a href="https://crypto.news/tornado-cash-dev-launches-regulatory-compliant-crypto-mixer/">crypto mixer</a>.</p>



<p>On May 26, the attacker effectively took over the protocol but strangely later got in touch with the Tornado Cash community with a fresh offer, indicating they were willing to give up control.</p>



<p>The attack significantly impacted the value of the TORN token, causing the token&#8217;s price to crash from nearly $7 to less than $4. According to&nbsp;<a target="_blank" href="https://www.coingecko.com/en/coins/tornado-cash" rel="noreferrer noopener">CoinGecko</a>, the coin has since recovered to about $4.30.</p>



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<h2 class="wp-block-heading" id="tornado-cash-under-fire-over-ties-to-hackers">Tornado Cash under fire over ties to hackers</h2>



<p>Tornado Cash, a service that enables users to conceal their cryptocurrency transactions for better privacy, has come under fire due to exploitation by criminals and North Korean hackers.</p>



<p>The platform has developed an infamous reputation as the go-to tool for <a href="https://crypto.news/level-finance-exploiter-moves-1m-worth-of-bnb-to-tornado-cash/">hackers</a> and criminals looking to launder money received illegally. </p>



<p>Over $8 billion has passed through Tornado Cash since its launch in 2019, according to data from Dune Analytics, highlighting the scope of unlawful operations the site has allowed.</p>



<p>Tornado Cash has previously been subject to penalties from the U.S. Treasury Department because it participated in money-laundering schemes run by North Korean hackers. </p>



<p>In particular, it was discovered that, as claimed by a U.S. Treasury official last year, the North Korean Lazarus Group had laundered some $450 million through the Tornado Cash service.</p>



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<p>As a result, the site is now under U.S. <a href="https://crypto.news/coinbase-supported-motion-counters-tornado-cash-sanctions/" target="_blank" rel="noreferrer noopener">sanctions</a>. However, privacy advocates in the cryptocurrency industry contend that Tornado Cash offers useful privacy protections to legal users.</p>



<p>The cryptocurrency industry continues to grapple with its reputation as a breeding ground for illicit activities. </p>



<p>While the pace of hacks has decreased from the tumultuous year of 2022, during which a staggering $3.8 billion was stolen, incidents such as the Tornado Cash hack serve as reminders of the persistent vulnerabilities within the crypto space.</p>



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Hacker drops control over Tornado Cash as they use it to wash stolen funds

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