A massive hack has drained $100 million of funds from Mango Markets. The Solana blockchain-based decentralized trading platform announced in a tweet Tuesday night that it is currently investigating an incident in which a hacker used oracle price manipulation to extract funds from Mango.
On Wednesday, Mango concluded that the hacker had stolen around $100 million in funds. According to blockchain audit website OtterSec, the attackers temporarily boosted the value of their collateral and then took out loans from the Mango treasury. The same firm also noted that the attacker had “rigged the price of MNGOs upwards on a number of exchanges and borrowed against their unrealized MNGO profits to empty the log.”
“As of now, all Mango users with deposits on the protocol cannot withdraw any assets; This incident has effectively resulted in all available equity being completely depleted,” Mango tweeted.
We will be disabling deposits in the frontend as a precaution and will keep you informed as the situation evolves.
If you have any information please contact email@example.com to discuss a premium for returning funds. 2/
— Mango (@mangomarkets) October 11, 2022
After the incident, the hacker responsible for the attack demanded a settlement, considering bad debts as a premium and insurance against bugs. This will be paid through the community treasury worth $70 million in coin (or $70 million).
The hacker has also proposed a settlement asking users who vote for him to agree to pay the bounty, settle the bad debts with the Treasury, waive claims against bad debt accounts, and waive a criminal investigation.
Things haven’t been going well in the crypto world lately when it comes to security. Last week, a blockchain bridge connected to Binance, the world’s largest cryptocurrency exchange, fell victim to a $570 million hack. The hack cost at least $100 million, according to the company.