In the early hours of Tuesday morning, the Mango Markets Exchange was robbed of over $100 million in cryptocurrency. The hacker may be able to keep nearly half of that amount. Mango DAO offered a deal for the thief that stole $100,000,000 in cryptocurrency from an exploit on the Mango Markets platform this week. This was a way to avoid criminal investigation and to pay off bad debts.
Mango DAO is a decentralized autonomous organisation that manages Mango Markets. It has offered a bug bounty of $47 million. The terms of the deal require that the hacker send $67 million in tokens back.
“We are trying to make users whole to what extent possible,” the Mango DAO proposal states, which addresses the thief.
A hacker managed to steal more than $100 million via an exploit in Mango Markets Solana DeFi. After temporarily increasing the collateral’s value, the attacker took out loans from Mango’s Treasury.
Mango DAO has been debating on the DAO forum about how to proceed since then.
The thief proposed his solution to return the stolen funds through DAO’s governance forum. He used the same tokens they used to vote in favor of the proposal.
A decentralized autonomous organisation, or DAO is a group structure in which control is distributed among its members who have the token. These governance tokens are used by members to vote for proposals that are executed with a smart contract.
The demands of the thief cite “bad credit” as a result of a June bailout by Solend and Mango Markets. The thief demands that Mango use the 70,000,000 USDC it has in its Treasury to pay off this substandard loan.
The DAO counter-proposal lists assets and amounts stolen and asks that they be returned based on an agreement.
The proposal requires that the thief transfer most of the funds into a wallet controlled by the Mango Upgrade Council.
The proposal states that assets other than USDC and MSOL must be returned within 12 hours of the proposal’s opening. The vote will be closed and the remaining items will be returned within 12 hours.
According to the DAO’s proposal, it won’t pursue criminal investigations nor freeze funds until tokens have been returned as agreed. The proposal is at 119,821,720 (96.3%) and 4,601,240 (3.3%) respectively, with 11 hours remaining.
Mango DAO stated further that the funds sent by the Thief and funds in DAO’s Treasury will be used to pay any remaining bad debts in the protocol to “make mango depositors whole.”
Mango Markets tweeted that they had “calculated every account’s equity using USDC” and planned to reimburse as much as possible using the DAO Treasury (subject to voter) and any tokens we are able to recover.