Following the $114 million attack on lending protocol Mango Markets, two Solanaased DeFi protocols have reopened.
On Tuesday morning, October 12th, Mango announced on Twitter that the financial platform was investigating an incident in which a hacker was able to drain funds from Mango via oracle price manipulation and that deposits had been disabled as a precaution.
Tulip, a yield aggregator, and UXD – a stablecoin provider – both announced on Twitter that they had recovered tokens from Mango Markets, which was struck with a significant exploit earlier this month, and can now continue to deliver their services.
Due to a weakness in Mango Markets’ system, the hacker was able to temporarily increase the value of its collateral earlier this month. The hacker then borrowed money from Mango’s treasury and fled with it.
Following the attack, UXD lost access to $19.9 million, while $2.5 million vanished from Tulip’s protocol. Mango Markets were utilized by both methods to deposit funds.
Solana is one of the world’s most popular blockchains. Its token, SOL, is currently the ninth-largest cryptocurrency by market capitalization. Many DeFi initiatives, which enable peer-to-peer trading, borrowing, and lending, are now built on Solana – which eventually raises the risk of the blockchain being the target of bad actors.
Mango Negotiating With The Hacker
Mango proposed to negotiate a $47 million agreement with the hacker in exchange for $67 million of the stolen tokens.
The individual claiming responsibility for the hack later stated that they would return the tokens provided the community agreed to pay off a prior operation’s “bad debt”.
The hacker refers to this “bad debt” as a result of a June rescue by Mango Markets and sister Solana platform Solend. In the demand, the thief requests that Mango utilize the 70 million USDC in its coffers to pay off this debt.
The DAO’s counter-proposal states the assets and sums taken, requesting that the thief restore them in accordance with an agreement with the DAO: 799,155 mSOL, 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.
After several days of negotiation – DAO was able to recover part of the $100 million that was stolen by the cyber-criminal. It is stated that the now-rich hacker walked away with over $50 million dollars worth of the agreement between the two parties.