With October becoming one of the worst months in terms of hacking against crypto platforms, Solana-based DeFi project Mango Markets stood out with an exploit valued at around $115 million.

The latest developments brought some relief to affected users, but also showed how a hacker could legitimately benefit from finding vulnerabilities in DeFi protocols.

The billionaire trick

CryptoPotato reported earlier this week as the Solana-based project became the latest victim of a DeFi exploit, with initial reports claiming the attacker stole $100 million in digital assets. The number could be a bit higher, according to more recent estimates.

Both sides sat down at the online negotiation table after the attack, with the attacker proposing to erase all bad debts. This was voted down by the community, even though the hacker had obtained a massive chunk of the MNGO protocol governance token and voted for his own proposal.

The Mango team’s counterproposal offered the attacker to keep around $50 million if he agreed to return the remaining funds. In addition, the team promised not to participate in any criminal proceedings and to erase the bad debt.

According to a tweet on Oct. 15, the attacker returned $67 million in crypto assets. The team also asked the community to come together on Monday to vote on “how we can fix this mess.”

It is worth noting that the native Mango token plunged after the attack by more than 50% within hours, from $0.04 to less than $0.02. As of now, it trades inches above the latter.

A trick or a clever trading strategy?

Although the community insists that what happened to Mango Markets was an exploit (hacking), the attacker does not believe it. A Twitter user named Avraham Eisenberg claimed responsibility for the events, but claimed to be involved with a team that was “operating a highly profitable business strategy.”

After refusing to call these actions an exploit in any way, Eisenberg said they believe everything they did was legal, as they used the protocol as designed, “even if the development team did not fully anticipate all the consequences of set the parameters the way they are”. .”

Eisenberg praised the deal with the insurance fund, saying “all users will be able to access their deposits in full without loss of funds” once it is completed.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off Binance Futures first month fees (terms).

PrimeXBT Special Offer: Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.





This post How a hacker was paid $50 million to exploit a DeFi protocol

was published first on https://cryptopotato.com/how-a-hacker-got-paid-50-million-for-exploiting-a-defi-protocol/

Author

Write A Comment