Mango DAO Unanimously Approves $42,000,000 Reimbursement Proposal

The decentralized autonomous organization (DAO) that manages the Solana (SOL)-based crypto exchange Mango Markets is approving a proposed reimbursement deal that arose from the exploit of the platform.

Earlier this month, Mango Markets claimed that an attacker manipulated the price of the Mango (MNGO) utility token and then took out a loan worth around $100 million, leaving the network with a negative balance.

Shortly after, Mango offered a deal, subject to the governance board’s approval, for the attacker to return less than half of the exploited funds. The DAO eventually approved with 191,888,153 votes for the proposed reimbursement of $42 million in USD Coin (USDC).

“Transfer 42,000,000 USDC to Developer Council Multi-sig to cover reimbursements to Mango v3 depositors, unneeded USDC will be sent back to the treasury by next week.”

Crypto trader Avraham Eisenberg has stepped forward as the person behind the exploit, but he claims that the incident is not a hack but a trading strategy that took advantage of the protocol’s loopholes.

“I believe all of our actions were legal open market actions, using the protocol as designed, even if the development team did not fully anticipate all the consequences of setting parameters the way they are.”

At time of writing, MNGO is trading for $0.0209.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Featured Image: Shutterstock/Heri Yusuf