Cryptocurrency

Mango Market exploiter says action was ‘legal’

Zegex

Avraham Eisenberg said he was the brains behind the $114 million Mango Market exploit, adding that his actions were legitimate.

In a tweet on October 15, Eisenberg said, “Even though the development team didn’t fully anticipate all the consequences of setting the parameters as they were, he and his team used the protocol as it was designed. ‘ said. He also named the exploit “a very profitable trading strategy.”

Eisenberg did not disclose the identities of his other team members.

Exploiter Negotiated Settlement to Make Mango Users Whole

To help users of the DeFi protocol, Mango Market users have โ€œ(negotiated) a settlement agreement with the insurance fund with the aim of restoring all users as soon as possible and increasing the exchangeโ€™s capital. “I tried to help by doing.”

His remedy is similar to how automatic deleveraging works on exchanges, he continued. The exchange uses automatic deleveraging mechanisms to manage risk when the insurance fund is insufficient to cover the positions of insolvent users.

Meanwhile, Eisenberg used $10 million of his own money to inflate the value of the Mango token, which allowed him and his team to successfully abuse the DeFi protocol.

The Mango community was divided on the news that the exploiters were able to get about 40% of the funds (about $47 million) in bounties. Typically, the trend in the industry is for exploiters to get around 10% of the funds that are exploited.

Eisenberg did not respond to a request for comment by CryptoSlate at the time of writing.

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