Cryptocurrency platform offers hacker 47 million as a compromise

The Mango Markets community has voted to reach a compromise with a hacker who stole $ 114 million from the project. The hacker was offered to return $ 67 million in cryptocurrency and keep the remaining $ 47 million as a reward. The platform’s management assured that it would not initiate a criminal investigation in this case.

Mango Market is a DeFi trading and credit platform based on Solana. The exploit was carried out by manipulating the price of Mango Market’s native token, MNGO. The increase in the value of the collateral in MNGO allowed the hacker to borrow and withdraw funds from the protocol for which he theoretically had no collateral.

Immediately after the exploit, representatives of the platform launched an investigation into the incident and took measures to freeze the stolen and withdrawn funds by a third party. The deposit function on the platform was temporarily disabled for security reasons. The price of the token then fell by 40%.

The problem of hacking DeFi protocols and other cryptocurrency projects is not new, and companies often offer hackers some money as a «bounty program» that is implemented «retroactively.» However, these amounts are usually much more modest. However, only a few are lucky — most hackers end up in jail.