Following a $117 million exploit on Oct. 11, the Mango Markets community is ready to make a deal with its hacker, allowing him to keep $47 million as a bug bounty, according to the protocol’s governance forum. decentralized finance (DeFI).
The proposed terms reveal that $67 million of the stolen tokens will be returned, while the hacker will keep $47 million. 98% of voters, or 291 million tokens, voted in favor of the settlement, which also stipulates that Mango Markets will not pursue criminal charges in the case.
With the quorum reached, the vote is likely to take place on October 15. The proposal said:
“The funds sent by you and the DAO mango treasury will be used to cover any bad debt remaining in the protocol. All mango depositors will be recovered. By voting for this proposal, mango token holders agree to pay the bad debt with the treasury, and waives any potential claims against bad debt accounts, and will not conduct any criminal investigation or freeze funds once the tokens are returned as described above.”
On Twitter, members of the community reacted to the development:
Mango hacker secures ~47 million dollar bug bounty.
The biggest crypto reward by far?
The current rate of generosity of 10% of the funds exploited will have to be revalued, lmao. pic.twitter.com/FcHkEbwY7u
— Hsaka (@HsakaTrades) October 14, 2022
The proposal has also been questioned in the governance forum, as stated by one voter:
“I agree 100% that getting user funds integrated as soon as possible is the top priority, but a $50 million ‘bug bounty’ is ridiculous. At most, the exploiter should recover their costs ( $15 million?) plus $10 million offered to the $600 million wormhole hacker. Mango can bargain better than this, especially since the exploiter is essentially stoned.”
The hacker carried out the attack by manipulating the collateral value of MNGO’s native token and then taking “massive loans” from Mango’s treasury. After draining the funds, the hacker demanded a settlement, completing a proposal on the Mango Market decentralized autonomous organization (DAO) forum requesting $70 million at the time.
Furthermore, the hacker voted in favor of this proposal using millions of tokens stolen from the exploit. On October 14, the proposal reached the required quorum to be approved. In exchange for the settlement, the hacker requests that users who vote in favor of the proposal agree to pay the reward, settle the bad debt with the treasury, waive any potential claims against the bad debt accounts, and not undertake any criminal or criminal investigation. the freezing of funds.
This post Mango Market’s DAO forum is poised to approve a $47 million settlement with a hacker
was published first on https://cointelegraph.com/news/mango-market-s-dao-forum-set-to-approve-47m-settlement-with-hacker
