Mango Markets Signs A $47M Deal With Hack: Detail
- Solana-based Decentralized Finance (DeFi) Mango Markets has signed a deal with the hacker who stole $114 million recently and the community is in favor of the same.
- The hacker will keep $47 million as a bug bounty and return the remaining sum of $67 million worth of tokens to the Mango Markets team.
- Once the percentage of tokens has been returned, the project will stop pursuing criminal proceedings and use treasury funds to write off any outstanding bad debt.
Solana-based Decentralized Finance (DeFi) Mango Markets, which recently reported a loss of $114 million in a hack, is witnessing heavy voting from its community in favor of making a deal with the hacker.
According to the proposed agreement, the hacker will keep $47 million as a bug bounty and return the remaining sum of $67 million worth of tokens to the Mango Markets team. The governance vote further states that once the percentage of tokens has been returned, the project will stop pursuing criminal proceedings and use treasury funds to write off any outstanding bad debt.
It is important to note that the attacker used around $10 million to carry out the hack. Therefore, that amount would be subtracted from the effective bounty.
In accordance with the agreement, the hacker would also return a portion of the tokens soon after the vote commenced as a “show of good faith.” On-chain data indicates that the hacker has returned those tokens, worth slightly under $8 million.
Interestingly, if the two entities agree on the bug bounty terms, it would be one of the biggest bug bounties in the digital asset history. However, it’s not clear if the agreement to forgo criminal prosecution will be legally binding in court.
4.6 million tokens are voting against the agreement in the governance vote, while 119 million support it. The vote has a majority, so when it concludes on October 15 it will probably pass.
The Mango Markets team initiated this governance vote, and the hacker doesn’t seem to have participated in it from the main wallets connected to the incident. Before this vote, the hacker initially created a governance vote and used 33 million of the stolen tokens to vote on it.
Earlier this week, Mango Markets, a Solana-based crypto lending and trading platform, witnessed a serious exploit due to Mango Market’s native token MANGO’s price manipulation. The manipulation of blockchain oracles, which provide blockchains with token price data, resulted in draining $114 million from the platform’s treasury, as TheCoinRise reported.
Notably, the breach is the sixth largest in the history of the DeFi sector, falling only below Cream Finance’s $130 million theft.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
