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unixfreak ago

One theory (that may be in practice) is that if you are able to control a vast majority of exit nodes and relays, it literally makes TOR pointless. Anyone can run a node or relay. Say for example, the NSA were to run many many nodes and relays -- flooding the TOR network with them, your connection through the TOR network could end up looking like...

NSA NODE > NSA RELAY > NSA RELAY > NSA RELAY > NSA EXIT NODE

Essentially stripping all anonymity. Using traffic analysis, the attacker could easily find where the request originated from if they were in control of every node/relay in the active connection.