1. Tornado Cash (TORN) is down by over 31% and crashed to as low as $3.50 earlier.
  2. The price crash is due to the trading platform getting hacked for almost 500K TORN.
  3. At least 400K TORN have already been converted into ETH at Bitrue.

The price of Tornado Cash (TORN) has plummeted by over 31% after news about the recent exploit of the platform circulated all over crypto Twitter. At the time of writing, TORN is changing hands at $4.46, according to CoinMarketCap.

The above price is only a slight recovery, as the token crashed to $3.50 earlier today. Consequently, Binance has halted TORN deposits to prevent the hacker from taking off the ill-gotten amount from the blockchain.

TORN/BUSD 4-hour chart (source: TradingView)

For those who missed the news, Tornado Cash has been hacked for at least 483,000 TORN a couple of hours ago. Given today’s market prices at $4.46, this would have at least been worth $2 million.

However, the exploiter appears to have converted most of the TORN into ethers (ETH) on cryptocurrency exchange Bitrue. Out of 483,000 TORN, only 97,700 remain unconverted into another cryptocurrency. At the time of writing, Bitrue has yet to make a statement or plan of action in light of the Tornado Cash hack.

The source of the hack, according to blockchain experts, was a malicious governance proposal. Specifically, the hacker has taken over the entire governance of Tornado Cash and obtained access to locked votes, which were represented by TORN.

Affected Tornado Cash community members are now voting on reversing the malicious proposal of the hacker in an attempt to restore the lost funds. However, blockchain experts are still working toward freezing the hacker’s ETH and TORN alongside identifying the exploiter.

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