Following the recent hack on Mango Market, the DAO has decided to provide a settlement for those affected by the hack with more than 98% of voting tokens in support of the settlement.
According to the decentralized finance (DeFI) protocol governance forum, the Mango Markets community is prepared to reach an agreement with its hacker, letting him keep $47 million as a bug bounty, following a $117 million vulnerability on October 11. According to the suggested agreements, the hacker will keep $47 million while returning the remaining $67 million in tokens.
The settlement has received support from 291 million tokens, or 98% of the voters, and also guarantees that Mango Markets will not take legal action in the matter. The voting will probably take place on October 15 now that the quorum has been attained. The suggestion said:
“The funds sent by you and the mango DAO treasury will be used to cover any remaining bad debt in the protocol. All mango depositors will be made whole. By voting for this proposal, mango token holders agree to pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.”
Community members responded to the development on Twitter as follows:
According to one voter, the proposal has also been questioned at the governance forum:
“Agree 100% that making users funds whole ASAP is the top priority but a $50m “bug bounty” is ridiculous. At most the exploiter should get their costs back ($15m?) plus $10m. $10m whitehat bounty is what was offered to the $600m wormhole hacker. Mango can negotiate better than this, especially given the exploiter is essentially doxed.”
The hacker obtained “large loans” from Mango’s treasury to carry out the attack by altering the value of the MNGO native token collateral. After stealing the money, the hacker requested payment and posted a request for $70 million on the Mango Market’s decentralized autonomous organization (DAO) forum at the time.
Additionally, the hacker used millions of tokens that were taken from the exploit to vote in favor of this proposal. The quorum needed for the proposal to pass was attained on October 14.
The hacker urges that users who vote in favor of the settlement agreement to pay the reward, settle the bad debt with the Treasury, waive all claims against accounts with bad debt, and forego any criminal investigation or money-freezing actions in exchange for the settlement.
