PlayIconNav
BTC
$57,044.30+5.14%
ETH
$2,342.78+3.09%
BNB
$519.19+4.66%
SOL
$134.38+4.59%
XRP
$0.53801561+2.56%
DOGE
$0.10397857+9.22%
CD20
$1,815.73+4.31%
TRX
$0.15456242+1.00%
TON
$5.18+6.36%
ADA
$0.34464704+3.04%
AVAX
$24.10+5.10%
WBTC
$57,020.60+5.13%
Ad
Markets

Mango Markets Exploiter Provides Ultimatum: ‘Repay Bad Debt’

Hacker proposes to send back stolen MSOL, SOL and MNGO if Mango Markets promises to pay back bad debt using USDC available in its treasury.

By Sam Reynolds
AccessTimeIconOct 12, 2022 at 3:40 a.m. UTC
Updated Oct 12, 2022 at 5:26 p.m. UTC
VolumeMuteUnmute

The rogue trader behind the recent exploit that drained Solana-based decentralized finance (DeFi) lending protocol Mango Markets of $100 million has sent an ultimatum to the community.

  • Posting on Mango's governance proposal platform, the exploiter says they want Mango’s treasury to use its $70 million available in USDC to repay the bad debt within the protocol.
  • This bad debt stems from a bailout that Mango Markets and rival Solana lending platform Solend put together for a large Solana whale that had $207 million in debt spread across multiple lending platforms.
  • At one time the whale had borrowed 88% of the available USDC on Solend.
  • The bailout was put together over concern that should the SOL token drop by another 20%, the whale’s positions would be liquidated, which would cause contagion and adversely impact the Solana ecosystem.
  • As a result of this ongoing issue with Mango Markets, the Wormhole token bridge announced it is pausing transfers from Solana.
  • Part of the exploiter’s ultimatum seeks a promise from Mango it will not pursue a criminal investigation or freeze his funds.
  • Mango's MNGO token is down 38% on day.

Read More: How Market Manipulation Led to a $100M Exploit on Solana DeFi Exchange Mango

UPDATE (Oct. 12, 2022 11:13 UTC): Refers to rogue trader as exploiter instead of hacker.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.