Mango Markets Exploiter Returns Funds, Releases Statement on Twitter

In recent news, Mango Markets, a decentralized crypto platform based on Solana, experienced an exploit.according to saucethe attack resulted in the loss of $114 million worth of crypto tokens.

Exploits in the cryptocurrency industry are becoming more and more prevalent on various platforms. Attackers use innovative approaches to manipulate vulnerabilities in targeted protocols. Over the years, millions of dollars have been lost to system abuse and attacks.

Exploiter Avraham Eisenberg has admitted involvement in recent attacks on mango markets. He operates with a team engaged in a “highly profitable trading strategy,” according to his statement Sunday. His Eisenberg, who describes himself as a digital art dealer, declined to disclose the size of the team.

The exploiter said his actions were legal

The attackers said their activity was a legitimate open market activity as they used the platform according to its design. However, in his opinion, the Mango Markets developers underestimated the impact of setting the parameters of the platform.

Eisenberg also observed that an exploit on the platform led to Mango Market’s bankruptcy. He said there was not enough insurance funds to do all the liquidation on the forum. Thus, in user funds he lost more than 100 million dollars.

The attackers related this situation to the exchange’s ability to auto-deleverage. This risk management process is employed once the negative equity is settled. This requires collecting profits from profitable traders to protect user funds.

Eisenberg then reported he wanted to salvage the situation by negotiating a settlement agreement that would return $67 million. increase.

Details of Eisenberg’s Mango Market Exploit

The exploit was due to a legitimate trading strategy on the DeFi platform.first action Eisenberg All it took was funding the platform $10 million. Then, manipulating the oracle he tripled the price of the Mango token from $0.30 to $0.91.

The soaring prices pushed up collateral for Eisenberg and his team, allowing them to borrow more money from the platform and drain $114 million.

Eisenberg will retain $47 million and return $67 million to the protocol, according to a Mango community vote. The DAO has also decided to use the returned funds to recapitalize the exchange. This helps the system deal with bad debts caused by exploits.

In addition to the Mango Markets exploit, Eisenberg has been implicated in other similar attacks, sources said. For example, the exploiter was accused of defrauding investors in FortressDAO earlier this year. The attack reached about $14 million.

Featured image from Pixabay and chart from TradingView.com