Riding The Wave News Summary 148
Attacker Takes Over Tornado Cash DAO With Vote Fraud, Token Slumps 40%, Influencer served settlement demand via NFT following $7M token presale, & more.
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Table of Contents
Tweets
Attacker Takes Over Tornado Cash DAO With Vote Fraud, Token Slumps 40%
Influencer served settlement demand via NFT following $7M token presale
Bitcoin Payments App Strike Expands to More Than 65 Countries From Three
Tweets
https://twitter.com/MikeWShell/status/1659971598810505217
https://twitter.com/WhaleChart/status/1660249853627179010
https://twitter.com/WhaleChart/status/1659994047396626436
https://twitter.com/GameofTrades_/status/1659914372586647553
https://twitter.com/GameofTrades_/status/1659589736879751259
https://twitter.com/GameofTrades_/status/1659559543544721410
Attacker Takes Over Tornado Cash DAO With Vote Fraud, Token Slumps 40%
The DAO handling operations, funds and future plans of privacy-focused crypto mixer Tornado Cash was effectively taken over by an unidentified attacker, or group of attackers, on Saturday.
DAOs, short for decentralized autonomous organizations, allow token holders to lock up their holdings as votes for proposing changes to a project. These changes can range from deploying treasury funds to purposes that benefit the project to expansion on other networks.
At the start of the weekend, the attacker floated a malicious proposal that hid a code function that granted 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 that gave the attacker access to all governance votes.
“Now that they have all the votes, they can do whatever they want,” security research @samczsun tweeted on Sunday. “In this case, they simply withdrew 10,000 votes as TORN and sold it all.”
Influencer served settlement demand via NFT following $7M token presale
A nonfungible token (NFT) influencer has been served with a settlement demand via an NFT — which casually dropped the “F-bomb” several times — alleging that the influencer engaged in wire fraud “at a minimum” on a recent $7 million token presale.
On May 20, Mike Kanovitz, a partner at law firm Loevy & Loevy, stated in a tweet that a settlement demand letter had been served as an NFT to the wallet address associated with the influencer known as Ben.eth, whose real identity remains undisclosed.
He alleged that Ben.eth “used a manipulative launch strategy” for the Psyop (PSYOP) token, which raised $7 million in its initial presale over 72 hours.
The concerns revolved around how the liquidity pools (LP) were structured and how the tokens “trickled out” after the presale.
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