Mango DAO Offers $47M to Hacker to Avoid Prosecution

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Last Updated on October 15, 2022 by Bitfinsider

This week, a thief made off with $100 million in cryptocurrency via an exploit in the Mango Markets platform. Mango DAO has offered the culprit a deal to settle their debts and escape a criminal inquiry.

The Mango DAO, the entity in charge of the Mango Markets decentralized autonomous organization, has offered the hacker a bug reward of $47 million, meaning the thief would have to return $67 million worth of tokens.

In a statement addressing the culprit, the Mango DAO proposal stated: “We are seeking to make users whole to the extent possible.”

Using a vulnerability in the Mango Markets Solana DeFi exchange, a hacker made off with nearly $100 million on Tuesday. An attacker temporarily increased the value of Mango collateral and then borrowed heavily from the company’s cash reserves.

Mango DAO members have discussed next steps in the DAO forum since then. To add insult to injury, the thief then apparently presented their own method for recovering the stolen assets through the DAO’s governance forum, and used the tokens they had stolen to vote in favor of the plan.

A DAO, or decentralized autonomous organization, is a group structure in which individuals who own the DAO’s token exercise collective power over the organization. These governance coins are used by members in a decentralized voting system for suggestions that will be carried out via smart contracts.

In his demands, the thief refers to “bad debt” that arose during a bailout that Mango Markets and another Solana platform, Solend, carried out in June. In the demand, the thief requests that Mango pay the bad debt with the 70 million USDC now in the company’s bank account.

“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 proposal stated. “The remaining assets shall be sent within 12 hours once the vote is complete and passes.”

According to the DAO’s counter proposal, the perpetrator is obligated to refund the stolen assets and funds in the amount of 799,155 mSOL, 761,577 SOL, 281.498 BTC, 2,354,260 SRM, 226 ETH, 11,774 FTT, 608 BNB, 152,843 GMT, 98,295 RAY, 1809 AVAX, 32,409,565 MNGO, and 10,000,000 USDC.

Under the terms of the plan, the majority of the stolen money must be transferred to a wallet controlled by the Mango Upgrade Council.

Once the tokens are returned as agreed, the DAO will not initiate criminal investigations or freeze cash. 11 hours remain, and 119,821,720 (96.3% of the vote) have voted in favor of the proposal, while 4,601,240 (3.7%) have voted against it.

The monies sent by the thief and the funds in the Mango DAO treasury would be used to pay off any remaining bad debt in the protocol and make “mango depositors whole,” the Mango DAO said.

Source: Twitter

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