An individual called Avraham Eisenberg has come forward to reveal his involvement in the Mango Markets exploit last week, claiming his actions were legal in open market conditions.
“I was involved with a team that operated a highly profitable trading strategy last week,” said Eisenberg in a tweet on Sunday, explaining that he believed they were within their legal rights and using the protocol as designed.
Eisenberg added that he did not expect Mango Markets to become insolvent as a result of these actions and claims he has negotiated a settlement with the protocol’s insurance fund to “remedy the situation.
Shortly after Eisenberg’s Twitter confession, the Mango Markets team confirmed that $67 million in various crypto assets had been returned to the decentralized autonomous organization (DAO).
“Let’s meet up on Monday 3 PM UTC on the Mango discord to discuss how we can sort out this mess,” stated Mango Markets.
A number of developers have reportedly already begun working on an algorithm to decide on a refund split and another program to redistribute funds to users.
Last week’s Mango Market’s exploit resulted in the loss of over $100 million from the Solana-powered protocol, removing all liquidity and leaving users unable to withdraw funds. Distressed users were further antagonized by a proposal on the Mango DAO, where the hacker vowed to return funds if he was paid $70 million using all the protocol’s bad debt. This proposal failed to pass as it did not meet the required quorum.
However, another proposal on the Mango DAO – also voted for by the hacker using millions of tokens stolen in the exploit – successfully passed on Oct. 15 with 98% of voters agreeing to let the hacker keep $47 million and for Mango Markets to not pursue criminal charges against him. While the weekend’s events will likely change the outcome of this proposal, users can expect that the next course of action will be determined following more DAO proposals on the governance forum.
