Mango Markets Hacker Wants to Keep $70M as Bounty Reward

OpenSea NFT hack

Attackers who stole more than $100 million from Solana-based decentralized finance (DeFi) platform Mango Markets, have suggested a governance proposal that, if approved, could allow them to keep roughly $70 million as a bounty reward.

Mango Markets Hacker Governance Proposal

As contained in the proposal, the attackers would return several tokens worth roughly $50 million to the platform, and in return, Mango Markets will use its treasury stash of $70 million USDC to pay off the bad debt and waive any potential claims against accounts with bad debt.

Additionally, the attackers requested that Mango not pursue any criminal investigations or freezing of funds once the stolen money is returned.

A vote on the governance proposal is currently ongoing, with the majority of users voting yes. Voting will conclude on October 14 at 9:12 p.m. Eastern Time (EST). The hackers also voted YES with their stolen MNGO tokens, which account for 0.66% of the total supply.

If the proposal is approved, the attackers will keep approximately $70 million after returning the $50 million.

$100 Million Exploit

Previously, Mango Markets suffered a major exploit with hackers draining over $100 million from its platform. The exploit was first identified by blockchain auditor OtterSec, who stated that attackers manipulated their Mango collateral.

According to OtterSec, the hackers “temporarily spiked up their collateral value, and then took out massive loans from the Mango treasury.”

Mango later confirmed the exploit via a tweet, saying it was “investigating an incident where a hacker was able to drain funds from Mango via an oracle price manipulation.”

Mango Markets is a Solana-based DeFi platform that offers crypto lending, trading, and portfolio management. The platform is governed by Mango DAO and MNGO is its native token.

MNGO was severely impacted following the hack. The token dropped more than 40% on the day and was trading at $0.02386 at the time of filing this report.

Meanwhile, in another report recently, the hacker that exploited cross-chain decentralized exchange (DEX) aggregator Transit Swap received $690,000 worth of Binance Coin (BNB) as a bounty reward for returning $23 million he stole from the platform.

Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!

Market Analysis
Liked Reading? Share with Friends