Mango Markets (MNGO) Initiates a Vote to Reimburse Victims of $114M Exploit

Mango Markets (MNGO) Initiates a Vote to Reimburse Victims of $114M Exploit

Mango Markets DAO (MNGO), the Solana-based decentralized exchange that suffered a $114 million exploit, has put up a proposal to reimburse its victims.

This comes after Avraham Eisenberg, the person who claims to be responsible for the attack, returned $67 million following their successful proposal to let them keep $47 million as a bounty reward. Eisenberg described his actions as a “highly profitable trading strategy” that was “legal”.

Mango DAO intends to use a snapshot of their users’ balance from one hour before the exploit to decide how much to return to each user. The reimbursements will be done in various tokens.

The proposal is live and will end on October 20. So far, 100% of voters have voted in favor of it.

The largest crypto hack this year

The attack on Mango Markets is the largest this year. Eisenberg and his team were able to temporarily spike up Mango’s collateral value and then took out massive loans from the Mango treasury. The incident resulted in a total draining of all equity available on Mango Markets.

Eisenberg then put forward a governance proposal to the Mango DAO stating that he would send approximately $67 million worth of various tokens back to the Mango treasury if they pay back all users without bad debt and any remaining bad debt.

Eisenberg and others involved won’t face any legal repercussions for the hack, as stated in his proposal that MNGO token holders voted overwhelmingly in favor of.

The Mango hack came only a few days after Binance, the largest crypto exchange in the world, suffered an exploit on its BNB chain that resulted in over $100 million of lost funds.

On the Flipside

• It’s unclear when Mango DAO is planning to reimburse its users.

Why you should care

Mango DAO’s willingness to reimburse its users has been met with applause from the general crypto market. However, investors should do their due diligence before investing their funds in different decentralized finance protocols to avoid any potential exploits.

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See original on DailyCoin