Mango Markets Hacker Returns all Funds Saying the Move was “Legal”

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on October 18, 2022 4:21 PM

    Updated on January 9, 2023 12:50 PM

    Mango Markets announced the return of $67 Million fund to DAO on twitter. The hacker asked the company to make a deal for finding the potential bug so far.
    Mango Markets Hacker Returns all Funds Saying the Move was “Legal”

    Cryptocurrency sector exploits are spreading like wildfire on several platforms. To exploit flaws in the targeted protocols, the attackers are employing cutting-edge strategies. System assaults and exploits have cost millions of dollars over the years.

    Settling Out with a Bounty

    With about 97% support and more than 473 million votes, the proposal for the Mango Markets scammer to return some of the money in exchange for a massive reward has been agreed.

    The Mango Markets prize has seized the cryptocurrency market's attention. Community members have expressed considerable doubts about the possibility that the Mango Markets hacker, who has already been doxed, will profit by $47 million. This might be the biggest bounty in history.

    On October 14, market watcher 'Hsaka' indicated that the 10% bug bounty rate Mango Markets was currently offering ought to be revised.

    Exploiter Accepts the Allegations

    Avraham Eisenberg, who has openly admitted his involvement in the $114 million hack of the decentralised cryptocurrency exchange Mango Markets last week, gave back $67 million on Saturday while defending his conduct. Company Chainalysis Kimberly Grauer, director of research, talks about the specifics and overall picture of crypto crime.

    Since they exploited the site in accordance with its intended function, the attacker claimed that their acts were legitimate open market transactions. However, he felt that Mango Markets' creators overestimated the effects of their decision to define the platform's settings in the manner they did.

    Eisenberg further noted that Mango Markets became bankrupt as a result of the platform's abuse. He brought out the insurance fund's inadequacy to handle all forum liquidations. Therefore, it lost more than $100 million in money from its users.

    “Unfortunately, the exchange this took place on, Mango Markets, became insolvent as a result, with the insurance fund being insufficient to cover all liquidations. This led to other users being unable to access their funds,” He tweeted.

    The Helping Hand not so Helping

    The attacker explained the circumstance in terms of how exchanges' auto deleveraging works. Once the negative equity is closed, this risk management procedure is used. To safeguard user funds, this necessitates calling back a portion of winnings from successful traders.

    Eisenberg subsequently claimed that he was seeking to resolve things by negotiating a $67 million settlement arrangement. He claims that his goal is to recapitalize the exchange and restore the rights of every user.

    Eisenberg has allegedly participated in other similar attacks in addition to the Mango Markets hack, according to a source. For instance, at the start of the year, the exploiter was charged with defrauding FortressDAO investors. The cost of the strike was almost $14 million.