The hacker says he will send back the stolen MSOL, SOL, and MNGO if Mango Markets agrees to pay back bad debts with USDC from its treasury.
The bad trader who recently used a scam to steal $100 million from Solana-based decentralized finance (DeFi) lending protocol called Mango Markets has given the community an ultimatum.
The exploiter wrote on Mango’s governance proposal platform that they want the $70 million in USDC in Mango’s treasury to be used to pay off the bad debt in the protocol.
This bad debt came from a bailout that Mango Markets and a rival Solana lending platform, Solend, put together for a big Solana whale who owed $207 million across multiple lending platforms.
At one point, the whale had borrowed 88% of the USDC that Solend had to offer.
The bailout was made because people worried that if the SOL token dropped by another 20%, the whales would sell their positions, spreading the problem and hurting the Solana ecosystem.
Because of this ongoing problem with Mango Markets, the Wormhole token bridge said it would stop Solana transfers.
Part of the exploiter’s ultimatum is for Mango to promise that they won’t look into him criminally or freeze his money.
The MNGO token for Mango is down 38% on the day.
Price Manipulation of NGOs
Later, the company admitted that someone had changed the price of oracle for their MNGO token. They also said that they had stopped deposits until they found out more about what was happening. Statistics show that the value of the MNGO token on the platforms has dropped by almost 52% since the exploit.
At the time this article was written, the money that had been taken out was still on the Solana blockchain. Centralized exchanges like Coinbase, Binance, and Kraken have flagged offending addresses in similar situations. These are the only places where someone could cash out amounts this high.
