Mango Markets (MNGO) exploiter collects a $47 million bounty and claims that DailyCoin’s actions were legal

Mango Markets (MNGO) exploiter rakes in a $47 million bounty and claims the actions are legal

The hacker behind Mango Markets’ $114 million exploit has fulfilled his agreement to return $67 million of the stolen funds to the Solana-based decentralized finance platform and pocket the other $47 million as a bounty.

Avraham Eisenberg, the hacker who claims he and his team were responsible for the attack, defended his actions, describing the event as a “highly profitable trading strategy” that was “legal.”

“I believe that all our actions were legal open market actions using the protocol as intended, even if the development team didn’t foresee all the consequences of setting the parameters as they are,” he explained in a tweet.

Eisenberg also claims to have helped “negotiate a settlement agreement with the insurance company with the goal of getting all users back to health and recapitalizing the exchange as quickly as possible.”

According to the attacker, the act was similar to how automatic debt reduction on exchanges works. Centralized exchanges like Binance and Bitmex use automatic deleveraging operations when their insurance funds are unable to accept bankrupt clients’ positions.

Eisenberg will face no legal consequences for the hack, as outlined in the proposal made after the attack to partially return the siphoned funds, which MNGO token holders voted overwhelmingly to support.

The Mango DAO will vote on how to split the funds later this week.

A record month for crypto hackers

Mango Markets exploit is part of the worst month for hacks and exploits in crypto history. According to Chainalysis, hackers have stolen $718 million so far in October.

The hacking frenzy was particularly intense on October 11, when four attacks took place, the most costly of which was Mango Markets. In the other unfortunate events, TempleDAO, a yield farming DeFi protocol trading on , 1,831 ETH worth $2.4 million at the time of writing this article, lost due to “insufficient access to control the MigrateStake feature”, according to blockchain security firm BlockSec.

Layer 1 blockchain QANplatform was the next victim to suffer a bridge hack that stole more than $1 million, followed by an attack on Ethereum-based wallet service Rabby, in which its Rabby Swap feature was exploited and around $200,000 was deducted.

Each of these attacks took place after the infamous Binance Chain (BNB) hack. A hacker successfully exploited the BNB chain to steal $100 million, affecting the entire BSC Token Hub – the cross-chain bridge between BNB Smart Chain and BNB Beacon Chain.

On the flip side

• While it appears that the hacker will avoid criminal investigation, it remains possible that a member of the Mango community will still take legal action.

Why you should care

The Mango Markets saga serves as another reminder that DeFi protocols can be attacked in a variety of ways. As always, investors should do their due diligence before committing funds to any particular decentralized finance protocol.

Learn more about recent DeFi hacks:

DeFi hack season continues as TempleDAO (TEMPLE) and Mango Markets (MNGO) lose over $100 million

Binance-backed BNB Smart Chain Completes Hard Fork to Prevent Future Cross-Chain Bridge Hacks

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