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HomeDeFiMango Market hacker proposes settlement plan after $117 million exploit

Mango Market hacker proposes settlement plan after $117 million exploit

The hacker responsible for the attack demanded a settlement on October 12, the day after $117 million was stolen from the Mango Market, Solana DeFi platform, via a price feed flaw. The proposal was posted on the governance forum of Mango Markets DAO (decentralized autonomous organisation).

If the hacker proposal was accepted then the hacker would have to send the stolen assets such as Mango Markets (MNGO), Solana and Marinade Staked SOL tokens to an address provided by the Mango DAO team.

mango market

However, the hacker claims that any bad loan be treated as a bug bounty and insurance, to be paid out through a community treasury of 70 million USD Coin (USDC) stablecoin.

The hacker used millions of tokens obtained through the attack to vote in favour of the plan. Nevertheless, proposal does not have the necessary criteria to pass. 

The hacker asks users who support the proposal to agree to the terms of the settlement, which include paying the bounty, clearing any outstanding debt with the Treasury, waiving claims against any accounts with outstanding debt, and refraining from pursuing any criminal charges or requesting the freezing of funds.

Unsurprisingly, the responses were largely negative. One user wrote, “You are disgusting. What you did is wrong in every way possible. The right thing to do would have been to inform the team of the vulnerability, NOT TO ATTACK IT. I hope NO MERCY is shown to you by the law enforcement community.”

In spite of the unfortunate incident, losses might be less than previously expected. For instance, Solana stablecoin network UXD reported that it has a total exposure of $20 million in Mango Markets.

However, the assets in its insurance fund is over $53.5 million, that would be more than sufficient to pay the losses. At the time of writing, the voting is still happening on the hacker’s proposal.

“The total exposure for UXD Protocol in @mangomarkets is $19,986,133.9037. We have more than enough money in our insurance fund to cover losses. Once Mango Markets has retrieved from the attack, consumers will be able to redeem UXD as it is 100% backed.”

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