The Mango Markets hacker spoke on Twitter, saying that the actions he took were completely legal and only resulted from the possibilities offered by the protocol. However, he agreed to return $67 million to the platform as requested, leaving him with a net profit of $37 million.
Mango Markets hacker pays back $67 million
The Hacker Behind Mango Markets’ $114 Million Price Manipulation returned $67 million to project teams.
The latter thus has responded favorably to the request made by the decentralized autonomous organization (DAO) of Mango Markets through its governance protocol yesterday afternoon, which offered to drop any legal action against the individual if he agreed to return $67 million and retain the remainder of the larcenyor $47 million.
Note, however, that the hacker won “only” 37 million dollars in this story insofar as he had to personally invest 10 million dollars to carry out the initial price manipulation.
Statement on recent events:
I was involved with a team that operated a highly profitable trading strategy last week.
— Avraham Eisenberg (@avi_eisen) October 15, 2022
In this thread, written on October 15 around 7 p.m., Avraham Eisenberg explains that he was ” involved in a team that operated a highly profitable trading strategy and that all actions taken resulted only from the use of a free market and the use of a protocol “ as it was designed “.
According to him, it was the insolvency of the protocol that motivated his team to return the funds as requested by Mango Markets, to the extent that this has left many aggrieved individualsthe latter having found themselves unable to withdraw their cryptocurrencies, all the assets having been siphoned off:
“Other users were therefore unable to access their funds. To remedy the situation, I participated in the negotiation of a settlement agreement with the insurance fund with the aim of compensating all users as soon as possible and recapitalizing the platform. […] Thanks to this agreement, once the Mango team completes the processing, all users will be able to access their deposits in full, without loss of funds. »
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The Mango community can expect a refund
About an hour and a half after the hacker revealed his identity, Mango Markets issued a statement via Twitter confirming that the $67 million had indeed been returned to him.
$67M in various crypto assets have been returned to the DAO. Let’s meet up on Monday 3 PM UTC on the Mango discord to discuss, how we can sort out this mess.
— Mango (@mangomarkets) October 15, 2022
The team in charge of the project informed its community that several developers were already working on staggered reimbursements for people affected by market manipulation.
Furthermore, Mango Markets clarified that no date could be given for the return of said funds, the implementation of these solutions must be structured around security and not speed. However, the community should take part in these decisions as early as next week since several governance proposals will be submitted to the DAO to determine how and how many assets would be redeemed.
👉 On the same topic – Crypto hacks are on the rise: will 2022 be the worst year for DeFi?
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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