Mango DAO has offered a $47m deal to a hacker to avoid a criminal investigation and pay off bad debt
Earlier this week, a hacker was able to steal over $100 million in crypto from an exploit in the Mango Markets platform. Now, the Mango DAO has offered a $47m deal to a hacker to avoid a criminal investigation and pay off bad debt.
Mango DAO, which is a decentralized autonomous organization, has offered $47m to the hacker, which means the thief would be required to send back $67 million worth of tokens to settle without pressing charges. Mango DAO’s proposal addressing the thief said that they are seeking to make users whole to the extent possible.
This hacking incident occurred on Tuesday, where a hacker stole over $100 million through an exploit in the Mango Markets Solana Decentralized Finance exchange. In this theft, the attacker temporarily drove up the value of Mango’s collateral and then took out loans from their treasury.
After the DAO has debated on the DAO’s forum, the hacker then apparently proposed his solution for returning the stolen funds by using the same tokens they stole to vote in the proposal’s favor with the DAO’s governance forum. The thief demanded from Mango to use the 70 million USDC in its treasury to pay off this bad debt.
The DAO’s proposal said that it would not pursue criminal investigations or freeze funds once the tokens are returned as agreed. The proposal had 96.3% yes votes and 3.7% no votes with 11 hours to go.
On Thursday, Mango Markets tweeted in which they said that they computed every account’s equity in USDC and plan to reimburse as much as they can using the DAO treasury (subject to vote) and whatever tokens they’re able to recover.