Hacker proposes to send back stolen MSOL, SOL and MNGO if Mango Markets promises to repay bad debt with USDC available in treasury.
The hacker behind the recent exploit that drained $100 million of Mango Markets’ Solana-based decentralized finance (DeFi) lending protocol has proposed an ultimatum to the community.
- Posting on Mango’s governance proposal platform, the hackers said that they wanted Mango’s treasury to use the $70 million available in USDC to pay off bad debt in the protocol.
- This bad debt stems from a bailout that Mango Markets and rival Solana lending platform Solend put together to a large whale Solana that has $207 million in debt across multiple lending platforms.
- At one point the whale borrowed 88% of the USDC available on Solend.
- The bailout was put together out of concern that if the SOL token drops another 20%, the whale positions will be liquidated, which will cause contagion and an adverse impact on the Solana ecosystem. .
Due to this ongoing issue with Mango Markets, the Wormhole token bridge has announced that they are suspending migration from Solana. - Part of the hacker’s ultimatum involved promises from Mango that they would not pursue a criminal investigation or freeze his money.
- Mango’s MNGO token is down 38% on the day.
Read more: Coinbase Receives In-Principle Approval to Offer Cryptocurrency Services in Singapore
Comments (No)