DeFi project offers BRL 250 million for hacker to return stolen money in attack
Mango DAO has offered a deal to the thief who got away with $100 million worth of cryptocurrencies from a hack on the Mango Markets platform earlier this week – a way to avoid a criminal investigation and pay off debt.
Mango DAO, a decentralized autonomous organization (DAO) that manages Mango Markets, offered the hacker a $47 million reward, meaning the thief would be required to return $67 million in tokens. under the terms of the agreement.
“We are trying to reimburse users as far as possible,” reads the Mango DAO proposal, addressing the hacker.
On Tuesday, an attacker managed to steal more than $100 million through an exploit on the Mango Markets exchange built on Solana. The hacker temporarily increased the value of his collateral and then borrowed from Mango’s treasury.
Since then, Mango DAO has been debating on the DAO forum on how to proceed. In a twist, the thief apparently proposed his own solution to return the stolen funds through the governance forum, using the same tokens they stole to vote in favor of the proposal.
A decentralized autonomous organization is a group structure where control is distributed among its members who hold the DAO token. Members use these governance tokens to vote on proposals executed using smart contracts.
The thief’s demands cite “bad debts” that resulted from a ransom executed by Mango Markets and platform Solana Solend in June. On demand, the thief asks Mango to use the 70 million USDC in its treasury to pay off this debt.
The DAO counter-proposal lists the stolen goods and valuables, asking the thief to return them based on an agreement with the DAO, including 799,155 SOL, 761,577 SOL, 281,498 BTC, 2,354,260 SRM, 226 ETH, 11,774 FTT, 608 BNB , 152,843 GMT, 98,295 RAY, 1809 AVAX, 32,409,565 MNGO and 10,000,000 USDC.
The proposal requires the thief to send most of the funds to a wallet owned by the Mango Upgrade Council.
“Within 12 hours of the proposal, you must return assets other than USDC, MSOL, MNGO and SOL as a demonstration of good faith,” the proposal reads. “Remaining assets must be submitted within 12 hours after voting is completed and approved.”
DAO says frozen funds are not proposed or offered with the frozen funds search as agreed. With 11 hours to go, the proposal has 119,821,720 (96.3%) yes votes and 4,601,240 (3.7%) no votes.
Mango DAO further states that treasury funds will be used to cover any debt.
-Mango contributors are working on recovery strategies and there is still much unknown.— Mango (@mangomarkets) October 13, 2022
-What we know as of now: We have a snapshot (Tuesday, Oct 11, 2022 at 21:20 UTC) of the state of all mango accounts right before the exploit.
We calculate the equity of each USDC account and plan to refund as much as we can using the DAO treasury (subject to a vote) and any tokens we can recover,” Mango Markets tweeted on Thursday.