One of the most significant risks that cryptocurrency users face is the possibility of being hacked by cybercriminals. Over the years, hackers have successfully stolen billions of dollars worth of cryptocurrencies from individuals and businesses alike. However, a recent attack on Tornado Cash governance stands out in several ways.
Tornado Cash is a decentralized crypto mixer that allows users to obscure their crypto transactions. On May 21, an attacker hijacked Tornado Cash governance by proposing malicious legislation that handed them total control. They could have done significant damage, including draining all the tokens in the governance contract and brick the router.
Fortunately, one community member named Tornadosaurus-Hex or Mr. Tornadosaurus Hex took steps to minimize the potential damage. He published a subsequent proposal requesting all members to withdraw all funds locked in governance. However, he was uncertain about the effectiveness of the new proposal as the attacker still had control over the governance. Suddenly, to everyone’s surprise, the attacker reached out to the Tornado Cash community with a new proposal hinting at their desire to restore governance control, even though not everyone felt they could be trusted.
Hex pointed out that the community had no choice but to comply with the attacker’s method of giving back the governance control. But, he assured the community that he had done his due diligence regarding verifying storage layouts and that it checked out.
While optimism about the attacker’s supposed change of heart grew, others speculated that it was a move to pump the TORN token’s price before cashing out. Unfortunately, this type of activity is not uncommon in the cryptocurrency space. Hackers often use deceptive tactics to increase the value of a coin before exiting their position.
Despite this incident, there has been a decline in cryptocurrency hacks in Q1 2023. This decline is good news for crypto users, but history suggests that they should not get complacent. In 2022, there was a spike in cryptocurrency hacks after recording a slow phase.
As cryptocurrencies continue to gain popularity, the need to protect oneself from potential hacks also increases. While no one can guarantee absolute protection, maintaining basic security measures, such as securing login credentials, using two-factor authentication, and avoiding suspicious emails or websites, can minimize the risk of losing funds.
Furthermore, blockchain technology has a crucial role to play in enhancing cybersecurity and improving trust in the crypto ecosystem. Blockchain can provide secure, tamper-proof ledgers that make it difficult for hackers to cover their tracks. Decentralized networks, like blockchain, can also reduce the risk of a single point of failure, as data or transactions are distributed across the network.
Cybersecurity, in general, is a major challenge for any business entity that deals with sensitive data, and cryptocurrency is no exception. However, with the right measures and awareness, it is possible to make the crypto space a more secure and trustworthy place for everyone.
