Tornado Cash price down 3% even as Binance resumes TORN deposits
TORN price was down 3% and traded near $4.09.
Binance had on Monday announced it would be resuming TORN deposits.
The Tornado Cash DAO suffered a security breach as an attacker leveraged a malicious proposal to drain the treasury.
The price of Tornado Cash (TORN) was down more than 3% on Tuesday morning and traded around $4.09 over the 24-hour period. TORN’s price had lost more than 11% over the past week, with the value of the Ethereum-based mixing service’s native token having traded lower since May 20.
Binance’s resumption of TORN deposits
Tornado Cash price fell more than 50% (from highs of $7.16 to under $3.60 within 24 hours) on May 20 as the decentralized privacy solution’s DAO suffered a governance breach that saw an attacker drain it of millions of dollars’ worth of crypto.
As reported, the attacker used a malicious proposal to gain control over the Tornado Cash DAO and withdrew over 483,000 TORN tokens. They proceeded to swap the tokens into Ether (ETH), laundering 472 ETH.
The incident saw Binance halt TORN deposits on the Ethereum and BNB Smart Chain blockchains, citing the security breach. On Monday, the world’s leading crypto exchange announced it would be resuming deposits for TORN on both Ethereum and BNB Chain networks.
“As the proposal to restore the state of governance in the Tornado Cash (TORN) DAO has been passed and executed, Binance has resumed deposits for TORN via the Ethereum (ERC20) network and BNB Smart Chain (BEP20). Previously, TORN deposits via the Ethereum (ERC20) network and BNB Smart Chain (BEP20) were suspended at 2023-05-21 01:48:40 (UTC) due to the recent incident in the TORN DAO,” the exchange wrote in a blog announcement.
However, the exchange noted that it would be moving TORN into its Innovation Zone. Moving TORN into the Innovation Zone means Binance believes it still needs to closely monitor the token as further developments unfold.
The price of Tornado Cash fell more than double digits around the news release and despite some upside to $4.35, it remains weak. TORN/USD is down 36% over the past two weeks and almost 50% this past month.