Mango Markets Hacker Proposes Settlement After $117 Million Exploit

Mango Markets Hacker Proposes Settlement After $117 Million Exploit

Incident Overview

On October 12, a hacker exploited Mango Markets, a Solana-based DeFi platform, draining approximately $117 million. The attack was carried out using a price feed exploit, allowing the hacker to manipulate prices and withdraw funds illicitly.

Proposal Details

The hacker submitted a settlement proposal to Mango Markets' decentralized autonomous organization (DAO) governance forum. Under the terms, the hacker would return the stolen funds, including MNGO, SOL, and Marinade Staked SOL tokens, to an address provided by the Mango DAO team.

Key Terms of the Settlement

• Repayment of Stolen Funds: The hacker agrees to send the stolen assets back to the DAO.
• Bad Debt Resolution: The hacker demands that any bad debt incurred during the exploit be treated as a bug bounty. This would be covered by the platform's $70 million USDC community treasury.

Community Implications

The proposal has sparked debate within the Mango Markets community. If approved, the settlement would allow users without bad debt to recover their losses fully. However, the use of the community treasury to cover bad debt has raised concerns about fairness and accountability.

The outcome of the proposal remains uncertain, as it requires approval from the DAO members. This incident highlights the risks and challenges associated with DeFi platforms, particularly those related to price feed vulnerabilities.

Conclusion

The Mango Markets hack and subsequent settlement proposal underscore the importance of robust security measures and governance frameworks in DeFi. As the community votes on the proposal, the outcome will set a precedent for how similar incidents are handled in the future.