According to a blockchain auditing website, the attacker got a huge number of loans from the Mango Treasury by manipulating the Solana-Based DeFi Platform's collateral.
Has been hacked in the latest exploit.
As per the reports, the attacker was able to steal more than $100 million via the DeFi protocol.
According to a blockchain auditing website, the attacker obtained a large number of loans from the Mango Treasury by manipulating the DeFi protocol's collateral. As a result, the Mango Treasury suffered a tremendous loss of funds.
Mago Markets is a DeFi platform based in Solana that trades digital assets for spot margin and perpetual futures. Mango Markets' overarching governance is managed by Mango's decentralized autonomous organization (DAO). The DeFi protocol immediately took action on the situation and noted:
“We are currently investigating an incident in which a hacker used Oracle pricing to drain funds from Mango. We are taking efforts to have third parties freeze funds in flight. As a precaution, we will disable deposits on the front end and will keep you updated as the situation develops.”
Mango Markets has requested that no further deposits be made until the matter is resolved. Furthermore, it is contacting the attacker in order to recover the funds while also giving a bug bounty.
The Exploit of Mango Markets
Joshua Lim, the Head of Derivatives at Genesis Global Trading, has revealed further information about how the hacker carried out the attack. He writes:
At 3:49 AM IST, the attacker funded acct A (CQvKS...) with $5 million in USDC collateral.
On the order book, the attacker then offered 483mm units of MNGO perps.
At 3:54 AM IST, the attacker funded acct B (4ND8F...) with 5mm USDC collateral to purchase those 483mm MNGO perps for $0.0382 per unit.
At 3:56 AM IST, an attacker started to alter the price of MNGO spot mkt, which reached a high of $0.91.
Account B was in the money by 483mm * ($0.91 - $0.03298) = $423mm at the MNGO/USD pricing of $0.91 per unit.
Using this P&L, the attacker then took out $116 million in loans across all tokens. According to Joshua, the attacker wiped away all liquidity on Mango.
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