Mango Markets to Approve New Deal With Hacker
- The new deal will see the hacker return roughly $67 million of the stolen tokens, and keep the remaining $47 million as bug bounty.
- Only 10% of the community was in favor of the previous proposal, but the new one has already reached quorum with 119 million tokens in favor.
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The community behind Solana-based DeFi platform Mango Markets is voting heavily in favor of making a deal with the hacker who earlier this week stole roughly $114 million from the platform.
It appears that the hacker’s original resolution proposal has failed to garner support from the Mango Markets community — with only 10% of respondents voting in favor — and the team behind the project has now put a counteroffer to the vote. While there is still some time remaining until voting is closed, “Repay Bad Debt #2” governance vote has already reached quorum — meaning it has gathered enough votes to pass — with 119 million tokens in favor and only 4.6 million against the deal.
Under the terms of the new offer, the hacker will return roughly $67 million of the stolen tokens, and keep the remaining $47 million as bug bounty. The community will also agree to pay off any remaining bad debt — which comes from a bailout Mango and Solend put together for a large Solana whale — using funds from the Mango treasury, and not pursue criminal investigations once the stolen tokens have been returned.
The current governance proposal also asked the hacker to send back some of the tokens — worth roughly $8 million — back to the platform shortly after the vote opens as a “show of good faith”, which according to on-chain data he has already done. The proposal reads:
“Within 12 hours of the proposal opening, you shall send back the assets other than USDC, MSOL, MNGO, and SOL as a show of good faith. The remaining assets shall be sent within 12 hours once the vote is complete and passes.”
Mango Markets’ troubles began on 11 October, when a hacker was able to manipulate blockchain oracles that provide token price data to inflate the value of his MNGO tokens. With this increased collateral value, the hacker then took massive debt positions on Mango, stealing roughly $114 million in tokens.
- On Saturday, the Tornado Cash DAO passed a malicious proposal that allowed an attacker to gain full control over the crypto mixer’s governance system.
- Hours after the incident, the attacker published a new proposal that, if passed, would return the governance control back to TORN token holders.
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- The Twitter account of the crypto exchange was compromised for roughly 45 minutes on Monday, resulting in 22 transactions connected to the hack.
- KuCoin has calculated that the total asset losses were 22,638 USDT, and noted that it will fully reimburse users affected in the incident.
- The Solana network experienced a noticeable slowdown in block production after its most recent 1.14 network upgrade was implemented last week.
- In order to avoid similar issues in the future, one-third of Solana’s core engineers will now be focused on stability and adversarial testing.