Using a market manipulation scheme, a hacker reportedly stole over $100 million in a recent Solana DeFi platform hack on Wednesday.
Mango Markets is a Solana DeFi platform that allows users to trade crypto on Solana for spot margin and trading perpetual futures.
According to OtterSec, a blockchain auditing firm, on October 12, a cyberpunk exploited the platform through price manipulation by boosting the value of the collateral and withdrew over $100 million from the Mango Markets Treasury.
The hacker funded an account with 5 million Circle’s USDC, and offered 483 million units of MNGO perpetual contracts on the markets’ order book.
After this, the attacker furthered by purchasing the MNGO perpetual contracts at $0.03 each. At exactly 6:26 PM ET, the attacker then started the price manipulation and pushed MNGO’s price from $0.03 to $0.91. By procuring a loan of $116 million, Mango Markets Treasury liquidity was drained, USDC, MSOL, SOL, BTC, USDT, SRM and MNGO were all affected by the hack.
Within ten minutes, the hacker pushed MNGO price from $0.02 to $0.91 using USDC.
However, it is necessary that you know that this kind of attack can not be carried out on centralized exchanges, price manipulation was easy for the hacker because MNGO was a thinly-traded token with low liquidity on the platform.
Hackers are now targeting crypto to steal money due to increased crypto acceptance and more crypto transactions among the world’s population due to the financial liberty they get from crypto, get financial liberty through personal interaction with our experts today.
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Hacker Sends a Proposal to Mango Markets
The hacker has Proposed to send back stolen MSOL, SOL and MNGO if Mango Markets promises to pay back bad debt using USDC available in its treasury.
The post reads;
“hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty/insurance, paid out of the mango insurance fund.”
Meanwhile, the attack resulted in MNGO holders losing a significant part of their holdings after a 31% decline in Mango Market’s token.
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