Mango Markets Hacker Wants 70 Million USDC as a “Bug Bounty”

A hacker responsible for a $117 million loss on Mango Markets on October 12 demanded a settlement, one day after the attack on Solana DeFi platform.

This proposal has been posted to the Mango Markets decentralized autonomous organization (DAO) governance forum.

The Hacker Proposal

The hacker would have to send stolen MNGO, SOL, and Marinade Staked SOL tokens to an address provided by Mango DAO if the procedure was passed.

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In the case of bad debt, users will be paid back in full, however, any bad debt will be treated as a bug bounty and insurance, to be paid out from the community treasury worth 70 million USD Coins, or an equal amount $70 million. 

The hacker voted for this proposal with millions of tokens he stole through the exploit. Despite this, the proposal lacks the quorum required for passage.

Those who approve the proposal are required to pay a bounty, pay off bad debts, waive any potential claims against bad debt accounts, and refrain from pursuing criminal investigations or freezing funds in exchange for the settlement, as the hacker requests.

Community’s Reaction

The community’s reaction toward the hacker proposals is unsurprisingly negative with one user saying:

“You’re disgusting. What you did is wrong in every way possible. The responsible thing to do would have been to disclose the vulnerability to the team, NOT EXPLOIT IT. I hope the law enforcement community shows you ZERO MERCY.”

In spite of this tragedy, losses could be lower than previously estimated. For example, the stablecoin protocol UXD disclosed a total exposure of $20 million to Mango Markets.

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Its insurance fund, however, contains more than $53.5 million in assets and would be able to cover any losses.

“UXD Protocol has a total exposure of $19,986,133.9037 in  @mangomarkets. Our insurance fund has more than enough capital to cover losses. UXD is 100% backed and users will be able to redeem once Mango Markets recovers from the exploit,” said UXD protocol on their Twitter.

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Jamilatul Mahmudah

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