Reddit Posts
Avraham Eisenberg, Mango Markets exploiter, expected to be charged with child pornography
SEC Sues Eisenberg for Draining Mango Markets, Alleges MNGO a Security
[MNGO Manipulation] UNITED STATES OF AMERICA v. AVRAHAM EISENBERG
A detailed explanation of what happened with CRV and AAVE.
There has been 4 hacks in one day, this is probably a new record. Over $115M exploited from Defi protocols in the past day.
The individual who hacked the Mango protocol has already spoken and made an offer.
Mango markets on Solana was just drained for over $100M.
Mentions
Well yeah, they're not charged with anything but tax and wire fraud charges. The DOJ can say anything in their press releases, but it's extremely telling that with all the hot air the DOJ is full of, in the end they can't even pin some sort of larceny-related charge. Probably because what they did is entirely the blockchain working as intended. It's not so much as an exploit in the illicit sense but rather, a manner by which the authorities have no way of fitting into a legal framework and possibly don't even understand fully. The subtext here is that the feds are trying desperately to pretend that they scored some sort of victory when really what happened here is that they used the oldest and most broadly construed old school charges that may contain all sorts of evidentiary issues anyway. This has a whiff of the MNGO exploit - he returned part of the money which was his undoing. All this will teach people is a) don't offramp, and b) don't communicate with the protocols or give any money back. In the long run these will be counter-productive, but the DOJ dgafs as long as they can score an immediate win.
randomly bought some coin called MNGO and it's up a bunch today. Nice
I said they were funded by jump, which they are. The price oracle was also 100% manipulated. “Mango Markets utilized oracles to calculate the price of an asset by using a moving average of centralized exchange price feeds. Here the oracle accurately reported the current price of $MNGO, by using the moving averages from a few exchanges to allow borrowing against it on Mango Markets. It’s just that the price of $MNGO at the time of the exploit was manipulatively inflated for just enough time for the attacker to borrow a tremendous sum against this temporarily inflated price.” https://infotrend.com/mango-markets-madness-a-case-study-on-the-mango-markets-exploit/ I find it very funny how Reddit continues to defend these scam companies when legit companies like chainlink, figured out price feeds 5 years ago and have never been exploited. What would be a better word to describe Pyth? How about incompetence?
Okay peeps ... ten of my 11 best crypto picks for now/next year... Confident at least 8 of these will do a 3x or more... 9 if anyone can guess number 2... Most of these are projects outside the top 50... Only risk what you can afford to lose COMFORTABLY and don't nuke your bank account for crypto.... From the top.... PARA... Parallel finance... spotted the graph looked sexy a few weeks back. Ready.to pop. It has already doubled from where I bought in at... 2: S [---------] 3: HDX - Really confident here, already taken (small profits) 4. DENT - chart looks good, on all metrics. Already pumped today, more to go. 5. SOLANA Ob-vio-us-lee... but not just solana... Solana will pump but when it does.... 6. MSOL (really like this project, good vibes and community, already had big success. 7. Raydium 8. Serum... 9. <SOL EX I forgot name of, lo g day sorry... 10... finance and defi...again... established projects and random low MC gems... Like 11.. step finance... And 12 - 13 and number 4 courtesy of my 14yo who is proving a very capable crypto student.... MNGO and
Coins: UpToken, BKCoin, MNGO, TRX, HEX, Stoner Cats NFT, Impact Theory NFTs, Exchanges: Binance, Kraken, Genesis, Gemini, Celsius, Coinbase, Bittrex, Beaxy, There's tons more
Anytime someone is shorting, they are using leverage. Anytime someone is using leverage, they are posting collateral in one asset to borrow another. Take a look at AAVE. It's the same idea. AAVE is a lending market, which effectively allows you to short anything listed on AAVE. You'll notice that AAVE has had to de-list many smaller coins on the platform. Why? Because exploiters. Have a look at the Mango Markets exploit by Avraham Eisenberg. Eisenberg inflated the price of the Mango token (a very low liquidity market). He was able to briefly push the price 100X on the market. By doing so, the MNGO tokens he had on the platform suddenly ballooned in value. Now, if he had to actually sell these on the market, there wouldn't be liquidity and he would not be able to extract any value from their inflated price. Selling any size in MNGO would bring the market price back down. However, when an asset can be used as COLLATERAL, its liquidity is no longer relevant. Meaning, the platforms tend to assume there is unlimited liquidity at the current market price. So, this allowed Eisenberg to use his MNGO tokens as collateral and borrow much higher quality assets like USDC. He withdrew the USDC, and now Mango Markets was left with a pile of worthless MNGO tokens and all of their quality assets gone. This is the type of exploit that happens when you allow low liquidity assets to be used as collateral.
tldr; Mango Markets' exploiter Avraham Eisenberg has been hit with a lawsuit by Mango Labs for $47 million in damages. Eisenberg is accused of manipulating Mango Markets’ native token MNGO through “fraud, deception,” and converting nearly $114 million from the protocol’s depositors into his own accounts. He was also accused of embezzling $14 million from Fortress DAO. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; The Securities and Exchange Commission of the United States has filed charges against Avraham Eisenberg, who allegedly defrauded Mango Markets of $116 million in crypto. Eisenberg is accused of manipulating the MNGO governance token to artificially increase the token’s price to USD Coin USDC tickers by $1.00. He is also accused of violating the securities laws. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
>The financial regulator said the MNGO tokens were offered and sold as a security. If SEC wins this case, it will set a precedent that will make it easy for the SEC to classify most coins/tokens as securities. Right?
tldr; The US Securities and Exchange Commission has charged Mango Market exploiter Avraham Eisenberg with manipulating MNGO tokens to steal $116 million. Eisenberg manipulated the Mango market by executing several large transactions that inflated the token’s value. This allowed him to drain all the assets held on the crypto platform. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
MNGO was a security? Funny, I don’t see it registered as such
The SEC is making the claim that MNGO token is a security, and therefore falls within its regulatory powers. Even if this civil case doesn't stick, the exploiter is also being criminally pursued by the DoJ for market manipulation and commodities fraud.
tldr; The US Securities and Exchange Commission has filed parallel charges against Avraham Eisenberg, the man accused of stealing $116 million worth of cryptocurrency from decentralized exchange Mango Markets. Eisenberg allegedly manipulated the MNGO governance token to artificially inflate the price of the token. The SEC is seeking injunctions, disgorgement with prejudgment interest, and civil penalties. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
>“Eisenberg engaged in a manipulative and deceptive scheme to artificially inflate the price of **the MNGO token, which was purchased and sold as a crypto asset security**, in order to borrow and then withdraw nearly all available assets from Mango Markets, which left the platform at a deficit when the security price returned to its pre-manipulation level,” said David Hirsch, head of the SEC’s Crypto Assets and Cyber Unit. Sneaky SEC....
I'd say QNT is up and functional, as is ALBT, LCX, AVAX, MNW, and MELD. They're all very active projects and building major partnerships in this bear... DOJ recently stated CRV and MNGO are commodities as well, so I'm curious what happens to LCX when Monty and others have made it very clear its a utility crypto.
“he traded in futures related to MNGO token, enabling him to withdraw the $110 million from other investors’ funds” - not getting how trading the token allowed him to syphon away customer funds
tldr; U.S. prosecutors have filed criminal charges of commodities fraud and manipulation against a man accused of trying to steal about $110 million in October by rigging the Mango Markets cryptocurrency exchange. Avraham Eisenberg's trades in futures related to Mango's crypto token MNGO enabled him to withdraw the money from other investors' deposits, with no apparent intention to repay the funds. Mango soon reached a settlement to recoup $67 million. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; A man has been arrested in the US for allegedly trying to steal €103 million from a cryptocurrency exchange. Avraham Eisenberg is accused of manipulating Mango Markets’s MNGO token to withdraw the funds from other investors’ deposits, with no apparent intention to repay the funds. Mango reached a settlement with Eisenberg to recoup $67 million. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; Avraham Eisenberg was arrested in Puerto Rico for his role in the $100 million Mango Markets exploit. Eisenberg and his trading partners took out a large position in Mango’s perpetual futures contracts, thereby artificially inflating the price of the illiquid MNGO token. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; U.S. prosecutors have filed criminal charges of commodities fraud and manipulation against a man accused of trying to steal about $110 million in October by rigging the Mango Markets cryptocurrency exchange. Avraham Eisenberg's trades in futures related to Mango's crypto token MNGO enabled him to withdraw the money from other investors' deposits, with no apparent intention to repay the funds. Mango soon reached a settlement to recoup $67 million. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
"NEW YORK, Dec 27 (Reuters) - U.S. prosecutors have filed criminal charges of commodities fraud and manipulation against a man accused of trying to steal about $110 million in October by rigging the Mango Markets cryptocurrency exchange. According to a complaint made public on Tuesday in Manhattan federal court, Avraham Eisenberg's trades in futures related to Mango's crypto token MNGO enabled him to withdraw $110 million in cryptocurrencies from other investors' deposits, with no apparent intention to repay the funds."
tldr; The US Department of Justice has charged Avraham Eisenberg with "market-manipulation offenses" related to his attack on the Mango Markets crypto exchange. Eisenberg is accused of manipulating the price of MNGO perpetual futures contracts on the Solana-based exchange. He also admitted to being "involved with a team that operated a highly profitable trading strategy" shortly after. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Two accounts were used to conduct the attack. On account “A,” the trader initially used 5 million USD coin (USDC) to purchase 483 million MNGO and go short, or bet against, the asset. Then on account “B,” the trader used another 5 million USDC to buy the same amount of MNGO, using 10 million USDC in total to effectively hedge his position. The trader then used more funds to buy up spot MNGO tokens, taking its price from just 2 cents to as much as 91 cents within a ten-minute span. This was possible as spot MNGO was a thinly-traded token with low liquidity, which allowed the rogue trader to manipulate prices quickly. As spot MNGO prices increased, the trader’s account “B” quickly racked up some $420 million in unrealized profits. The attacker then took out over $116 million in liquidity from all tokens available on Mango, which effectively wiped out the protocol. ​ Source: [https://www.coindesk.com/markets/2022/10/12/how-market-manipulation-led-to-a-100m-exploit-on-solana-defi-exchange-mango/](https://www.coindesk.com/markets/2022/10/12/how-market-manipulation-led-to-a-100m-exploit-on-solana-defi-exchange-mango/)
>By being on both sides of the transaction, Eisenberg artificially inflated the price of MNGO relative to USDC, allowing him to borrow and then withdraw $110 million of different cryptocurrencies, the complaint said. Mango soon began negotiations with Eisenberg and reached a settlement to recoup $67 million. "All mango depositors will be made whole," with token holders who vote for the settlement agreeing not to "pursue any criminal investigations or freezing of funds once the tokens are sent back," a community post said at the time. ​ Hold on. He borrowed $110M and repays $67M? No charges? What a deal. And how will "all mango depositors be made whole" with a $43M hole in their balance sheet? "trust me bro"
tldr; U.S. prosecutors have filed criminal charges of commodities fraud and manipulation against a man accused of trying to steal about $110 million in October by rigging the Mango Markets cryptocurrency exchange. Avraham Eisenberg's trades in futures related to Mango's crypto token MNGO enabled him to withdraw the funds, with no apparent intention to repay the funds. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; U.S. prosecutors have filed criminal charges of commodities fraud and manipulation against a man accused of trying to steal about $110 million in October by rigging the Mango Markets cryptocurrency exchange. Avraham Eisenberg's trades in futures related to Mango's crypto token MNGO enabled him to withdraw the money from other investors' deposits, with no apparent intention to repay the funds, the complaint said. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
I mean, trading and utility alone make it better. If I send you an NFT on Eth, it'll cost a low low bear market price of like $25 (not sure exact gas costs right now but it was hundreds when I was on there). That's in a bear market. You and I just want to trade a couple of pieces and we have to pay a whole meal's worth of money? Nonsense. Transactions being so cheap on algo has also led to some interesting advancements in utility. For example, MNGO has these quests you go on where you soft-stake your nft for a week and you get rewarded one of multiple possible NFTs that you can exchange for their utility token called shrimp. These shrimp that can be used to color your fren NFTs, for sports betting in the popcorn lounge, or for raffles. That's on top of each MNGO NFT already airdropping shrimp to you weekly. This is just what one project is doing and all of this would cost thousands if no hundreds of thousands for a creator on Etherium. And again, that's in a bear market. ​ Even just listing your NFTs. On Algorand it costs pennies, but on ETH it costs that same gas fee and you might not even sell the NFT. Want to change the price to adapt the market? Just delist and relist and pay the gas again. It's asinine. ​ NFTs are an overwhelmingly better experience on Algo than on ETH, IMO. We also have some of the best artists I've seen on crypto in general. Disclaimer: I'm biased. My whole portfolio is algo NFTs, but I'm up quite a bit in a sea of red so it's not like I'm shilling you bags I'm holding. If you have any interest at all, I highly recommend checking it out!
[https://www.fxstreet.com/cryptocurrencies/news/solana-exploit-alert-exploiter-behind-100-million-mango-markets-hack-issues-warning-202210121845](https://www.fxstreet.com/cryptocurrencies/news/solana-exploit-alert-exploiter-behind-100-million-mango-markets-hack-issues-warning-202210121845) >The attacker funded an account with 5 million USDC collateral and offered 483 million units of MNGO perpetual contracts on the markets’ order book. Following this, they repurchased the MNGO perpetual contracts at $0.03 each. The attacker began manipulation at 6:26 PM ET and pushed MNGO price from $0.03 to $0.91. Procuring a loan of $116 million from the Mango Markets Treasury, the attacker drained the platform of its liquidity. USDC, MSOL, SOL, BTC, USDT, SRM and MNGO were hit by the hack. Not saying Mango has no fault, but doesn't means what he did is legal. This is a grey area, and without even understanding what he did, it's probably better for you not to have such a strong opinion
This is how Matt Levine related it to traditional finance. ​ ​ The simplest form of market manipulation is: 1. Buy a lot of Thing X, pushing its price up. 2. Sell it at the new high price, for a profit. This, I frequently point out, should not work. In Step 1, you push up the price of X by buying it; therefore, in Step 2, you will push the price down by selling it. There are no free lunches that are this simple. ​ Here is a small modification that seems promising: 1. Buy a lot of Thing X, pushing its price up. 2. Borrow against your X: If you have 100 million X, and X is now worth $1, then you have $100 million worth of X, and maybe someone will give you, say, a $50 million margin loan against it. 3. Run away with the $50 million. ​ The reason this seems promising is that you are not selling X in Step 2, which means you are not pushing down its price. Still it strikes me as doubtful, in the general case. You had to spend a lot of money to (1) accumulate 100 million X and (2) push its price up. If X started at $0.01, and ended at $1, and you bought 100 million of it to get it there, then you probably paid an average price of around $0.50. (You bought your first 1 million at $0.01, your next 1 million at $0.02, etc.) So you paid about $50 million to push the value of your holdings to $100 million. But you can’t borrow the full $100 million: At best, you’ll probably get a margin loan of about $50 million. So you’ll get back roughly what you put in, or realistically less given various frictional costs. ​ I don’t want to rule this out entirely: This might work if (1) you are good at manipulating the price, in the sense that you know how to make the price move without spending too much money, and (2) someone will give you a margin loan at a high loan-to-value ratio. This approach is roughly what Bill Hwang is accused of at Archegos Capital Management: He allegedly traded tactically in ways that moved stock prices a lot, and borrowed 90% or more of the value of his positions from his banks. If he played it perfectly — and there is no evidence that he did — then he could have taken out way more money than he put in, leaving his banks with the losses. Overall though this approach seems hard. ​ But you can work with it. Here is a subtler modification: 1. Thing X trades at $0.01. 2. You go to a not-particularly-busy futures trading platform, open an account and offer 100 million X futures for $0.01. Futures are generally leveraged products, where you don’t have to pay the full amount of the trade upfront. But let’s say you do: You put up $1 million of collateral for this $1-million-notional position. 3. You walk out of the futures trading platform, put on a fake mustache, walk back in, open a new account and bid to buy 100 million X futures. You put up, say, $1 million of collateral for this position. 4. The futures platform is not particularly busy, so no one else wants to buy or sell X futures and you end up trading with yourself. You don’t move the price of X or anything, but your two orders cross and you end up both long and short 100 million X futures — in two different accounts — at $0.01. 5. You go to a regular exchange and start buying X in the open market, pushing the price up to $1. Let’s say X is not all that liquid. You buy 10 million X, starting at $0.01 and ending up at $1. Your average cost is about $0.50, so you spend about $5 million. 6. You have spent a total of $7 million: $1 million to get long futures, $1 million to get short futures, $5 million to push up the price of X. 7. Now you put the fake mustache back on, go back to the futures exchange and say “I see that my long futures position is in-the-money by $99 million. I would like to borrow $40 million against my winnings.” 8. The futures exchange looks at the $1 price on the spot market and says, yep, sure enough, you’re up $99 million. They want to keep some collateral against this position, but they’ll give you some back. So they give you the $40 million, and you stuff it in a suitcase and drive off. 9. Meanwhile they call you on your other phone number — the number you gave them in Step 2 — to say “hey your 100 million short futures position moved against you by $99 million, could you please send us that money,” but that call goes straight to voicemail and they never hear from you again. 10. Your net profit is $33 million, the $40 million from Step 8 minus the $7 million from Steps 2, 3 and 5. ​ This approach is stupid and should not work. It requires: * A pretty illiquid market for the underlying Thing X, so that you can push the price around without spending much money. * A very sleepy futures market, where you can just trade with yourself without anyone noticing and without moving the price. * A futures market that will let you trade very large size, despite being very sleepy: Given how illiquid and volatile Thing X is in my example, it would be silly for a futures market to actually let you put on a 100 million X futures position, particularly with so little collateral. * A futures market that will cheerfully cash you out on your unrealized gains in Step 7, even though the contract has moved in your favor rapidly and suspiciously. * A futures market that won’t come after you for your losses in Step 9. ​ I think you would have a hard time running this trade in, like, the oil market. Still it hangs together in a rough schematic way, which means you can try it in the crypto market. Crypto, particularly decentralized finance, has some key advantages for this, including: * Weird and fragmented liquidity, so that you can trade with yourself on a futures exchange, and you can move the price of a token a lot on the spot market; * A love of mechanical rules and automated markets, so that if your X position spikes from $1 million to $100 million, some decentralized finance platform will say “yup, now it’s worth $100 million, so it’s good collateral for a $40 million loan”; and * A presumption of anonymity, so exchanges will let you trade with yourself, and won’t be able to come after you for your losses, since they just have some anonymous wallet addresses. ​ Here you go: >An attacker spirited away about $100 million from decentralized finance provider Mango by manipulating the price of its token in an exploit that wiped out depositors on the crypto platform. >The heist began with two accounts funded with the stablecoin USD Coin, the platform said Wednesday on Twitter. The accounts took large positions in Mango perpetual futures, causing the price of the Mango token to spike. > >The price jump stoked an unrealized profit from the futures. The attacker used that to borrow and withdraw roughly a net $100 million from the protocol in a range of tokens -- leaving depositors with nothing, according to Mango. > >“This incident has effectively resulted in a total draining of all equity available,” the platform said on Twitter, adding the attackers are communicating with Mango and “indicating a willingness to negotiate.” ​ Crypto derivatives trader Joshua Lim explained the exploit on Twitter, and it is pretty much the schematic thing I laid out above. The attacker funded one account on the Mango perpetual futures exchange with $5 million, offered 483 million futures on Mango’s own MNGO governance token, funded another account with another $5 million, and lifted those 483 million futures at a price of $0.0382. Then the “attacker started to move the price of MNGO” on the spot market, by buying MNGO tokens on centralized exchanges. “At MNGO/USD price of $0.91 per unit, account B was in the money by 483mm * ($0.91 - $0.03298) = $423mm,” and “that was enough unrealized P&L to take out a loan of $116mm across a bunch of tokens, which then left Mango and leaves the protocol at a deficit.” ​ Look, I had never heard of the Mango token until this morning, which is a crucial advantage for me. If you had come to me and said “I have Mango tokens with a market value of $423 million, I want to use them as collateral for a loan, would you lend me $116 million against these Mango tokens?” I would have said “absolutely not, Mango tokens, not a thing.” And that would have been correct, both in the narrow sense that the “real” market value of 483 million Mango tokens was about $18 million and in the broader sense of, well, why was it even $18 million? But the Mango protocol itself just had some price oracles that connected to some exchanges, and when those exchanges showed that the tokens were trading at $0.91, it believed them. So it computed a value of $423 million, and that was plenty of collateral to support a $116 million loan, and there you go. Mango could look at market prices, but it could not apply common sense, and that was its problem.
If all he did was use the platform to make a savvy deal, you would be right. But he knowingly pumped the price of MNGO by like 10,000% in order to get a loan he shouldn't have been able to get. That is market manipulation and it is absolutely illegal.
Market manipulation is still illegal. He pumped the price of MNGO in order to trick the DAO into giving him a loan he shouldn't have been able to get. Pretty cut and dry.
The issue seems to be with how the oracle was implemented. It's got nothing to do with oracles themselves, which are required for DeFi to function properly. I'd hazard a guess that the "oracle price" Mango Protocol was using wasn't a decentralized aggregate of what the Mango token was trading at across various markets, but rather what it was trading for on Mango Protocol itself. Essentially what happened was this... 1. Exploiter deposits 5,000,000 USDC onto their Solana address from FTX. 2. Uses the 5,000,000 USDC to open a position of MNGO/PERP * 483,000,000 and places these for sale on the Mango order books. 3. Exploiter deposits another 5,000,000 USDC to a different address and uses this to buy the 483,000,000 MNGO/PERP position for 0.0382/unit 3. Exploiter begins to trade MNGO/USDC aggressively on Mango Protocol and drives the price of MNGO up to 0.91c - possible because it's a fairly illiquid token/pool. This isn't the true market price, but it's what it was trading for temporarily on the protocol and likely the source of their "oracle" price. 4. Mango Protocol allows users to borrow other assets using the account balance as collateral. The exploiter now has 483,000,000 MNGO/PERP tokens the protocol believes are valued at 0.91c - so around US$439,530,000 which of course isn't the real value of the account. The exploiter uses this to borrow around $116,000,000 in real value of various tokens (USDC, SOL, BTC, etc), effectively siphoning off all the available liquidity on the platform.
FTX is the source they used for their oracle pricing of MNGO
tldr; A rogue crypto trader utilized millions of dollars to manipulate the prices of Mango’s MNGO tokens on the namesake decentralized exchange (DEX). *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
>A rogue crypto trader utilized millions of dollars to manipulate the prices of Mango’s MNGO tokens on the namesake decentralized exchange (DEX) to eventually drain over $116 million in liquidity from the platform. See? Someone's making money on Solana's DeFi!!!!!!!
>Set a cap on the value that can be borrowed against your low-liquidity tokens (like MNGO). That is a good step to avoid issues like this, but on top of that I would not use the instant spot price from the Oracle but something like the vwap price (24h volume weighted average price) for calculations
I’d say what he did is morally wrong but he really didn’t break the rules. The devs are absolute morons for allowing MNGO to be used as collateral and ALSO not even using a TWAP(time weighted average price) to mitigate what just happened. Its really hard to believe they are this dumb, every platform like this utilizes TWAP and multiple oracle data sources to avoid this scenario, so this could be an inside job, this lesson was learned years ago.
For anybody who is confused about what is going on I will explain below. TLDR; This wasn’t a “hack” this guy just took advantage of the devs dumbass decisions with a sprinkle of market manipulation. MNGO is an illiquid shitcoin that can be used as collateral for the Mango defi platform. He pumped the price of it on FTX 500% instantly with a big buy and used it as collateral to borrow actually valuable crypto with no intention of repaying at the super inflated valuation. He got to borrow a lot more than he should’ve because of the huge instant price pump. Since the token has dropped like 90% from that high the collateral is worth far less than what he borrowed from the protocol, this is the “bad debt” He is now offering to return some of what he borrowed, keeping the rest and proposing the treasury makes up the difference of the bad debt for the users. He is doing this because his FTX account is KYC’d but this isn’t a “hack.” He played by the rules but the rules were extremely shitty, the devs are morons for letting MNGO be used as collateral. So it’s really not clear if this was even criminal, maybe some market manipulation charge but crypto has no laws on the books against this stuff and if he’s not a US citizen it’s basically good game.
Heres what he did: MNGO is an illiquid shitcoin that can be used as collateral for the Mango defi platform. He pumped the price of it on FTX 500% instantly with a big buy and then used it as collateral to borrow actually valuable crypto with no intention of repaying. He got to borrow a lot more than he should’ve because of the huge instant price pump. Since the token has dropped like 90% from that high the collateral is worth far less than what he borrowed from the protocol, this is the “bad debt” He is now offering to return some of what he borrowed, keeping the rest and proposing the treasury makes up the difference of the bad debt for the users. He is doing this because his FTX account is KYC’d but this isn’t a “hack.” He played by the rules but the rules were extremely shitty, the devs are morons for letting MNGO be used as collateral. So it’s really not clear if this was even criminal, maybe some market manipulation charge but crypto has no laws on the books against this stuff and if he’s not a US citizen it’s basically good game. Let me know if this helps.
I did some more digging. Mango is different from Venus because they offer a derivatives platform alongside the lending platform. Both utilities are integrated with one another. This creates an environment where an unrealized gain on perpetual futures can be used as collateral to borrow existing assets on the platform. This means that the hacker did not need to deposit a bunch of MNGO spot to borrow assets. Instead, all the hacker needed to do was: * Open massive position on MNGO-PERP * This was done using two accounts. One account (A) sold the perps (you can theoretically write/sell up to 2X your account value (2X leverage). Other account (B) bought these perps (long). * This massive transaction was used to push MNGO index price up massively, to the point where account A was massively underwater. However, there was no liquidity to liquidate them so they just accumulated a ballooning deficit. * Now Account B which has the massive MNGO PERP long has huge unrealized gains. They are able to use those unrealized gains to borrow assets without even closing their MNGO position? I think? Absolutely ridiculous if so. * There was also huge manipulation of the spot market so there was some shenanigans going there too
tldr; Hacker proposes to send back stolen MSOL, SOL, and MNGO if Mango Finance promises to pay back bad debt using USDC available in its treasury. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
MNGO used a Switchboard oracle
The solution to this is so easy. Set a cap on the value that can be borrowed against your low-liquidity tokens (like MNGO). They let this guy borrow basically the entire platform with MNGO tokens. That is absurd.
The hacker just [announced](https://app.realms.today/dao/DPiH3H3c7t47BMxqTxLsuPQpEC6Kne8GA9VXbxpnZxFE/proposal/3WZ5DpZXDvNAK4JwPS1HDPzSinEJUGpBC4XXx9vPtnVS) a bounty offer. It’s created as a governance proposal for holders to vote on. WTF? I love crypto. The message in full: > hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty / insurance, paid out of the mango insurance fund. By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.
The hacker just [announced](https://app.realms.today/dao/DPiH3H3c7t47BMxqTxLsuPQpEC6Kne8GA9VXbxpnZxFE/proposal/3WZ5DpZXDvNAK4JwPS1HDPzSinEJUGpBC4XXx9vPtnVS) a bounty offer. It’s created as a governance proposal for holders to vote on. WTF? I love crypto. The message in full: > hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty / insurance, paid out of the mango insurance fund. By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.
The hacker just [announced](https://app.realms.today/dao/DPiH3H3c7t47BMxqTxLsuPQpEC6Kne8GA9VXbxpnZxFE/proposal/3WZ5DpZXDvNAK4JwPS1HDPzSinEJUGpBC4XXx9vPtnVS) a bounty offer. It’s created as a governance proposal for holders to vote on. WTF? I love crypto. The message in full: > hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty / insurance, paid out of the mango insurance fund. By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.
The hacker just announced a bounty offer. It’s created as a governance proposal for holders to vote on. WTF? I love crypto. The message in full: hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty / insurance, paid out of the mango insurance fund. By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.
The hacker just announced a boy try offer. It’s created as a governance proposal for holders to vote on. WTF? I love crypto. The message in full: > hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty / insurance, paid out of the mango insurance fund. By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.
The message in full here. > hi all, the mango treasury has about 70M USDC available to repay bad debt. I propose the following. If this proposal passes, I will send the MSOL, SOL, and MNGO in this account to an address announced by the mango team. The mango treasury will be used to cover any remaining bad debt in the protocol, and all users without bad debt will be made whole. Any bad debt will be viewed as a bug bounty / insurance, paid out of the mango insurance fund. By voting for this proposal, mango token holders agree to pay this bounty and pay off the bad debt with the treasury, and waive any potential claims against accounts with bad debt, and will not pursue any criminal investigations or freezing of funds once the tokens are sent back as described above.
It doesn’t even seem like a “hack” the MNGO token pumped 400-500% on FTX before the “hack” They probably allowed the MNGO coin be used as collateral and since it’s an illiquid shitcoin a whale pumped it 400%, deposited it as collateral and maxed out loans on real crypto assets. If this is what happened, which price chart suggests it, it isn’t even a hack. It’s just another idiotic crypto project
They probably allowed the MNGO coin be used as collateral and since it’s an illiquid shitcoin a whale pumped it 400%, deposited it as collateral and took out loans on real crypto assets. If this is what happened, which price chart suggests it, it isn’t even a hack. It’s just another idiotic crypto project
Great examples in your article. Nice read. An interesting example I’ve recently come across is “Mostly Frens” an NFT on the Algorand blockchain. Essentially a previous nft of MNGO project can dream up a fren. You then use the projects ASA (like an erc-20) token to evolve or make the dream NFT more vivid. The ASA can’t be bought on a dex but rather by holding and participating in the community. Really interesting use case. https://www.mostlyfrens.xyz/
This sub likes Algorand but doesn't shill MNGO?
Tinychart shows all the ASAs with active Tinyman liquidity pools, most will have links to their websites. AlgoFi for lending/borrowing, Algomint for bridging/wrapping ETH/BTC, nftexplorer for NFT collections, stake yieldly to get exposure to new projects or just to generate decent APY. Love or hate NFTs, some of those community discords (notably MNGO/Al Goanna) are very powerful for getting information on upcoming dapps/projects because they are full of active Algo developers and people just generally obsessed with the ecosystem.
MNGO not doing too bad considering
Some of them become literal financial products, where you receive tokens for holding/staking NFTs. And these tokens have as much value as most altcoins, that means it depends on the community. You can also see them as entry tickets into exclusive clubs. Most discord servers have the option to check your wallet, and allow you to access some channels only if you hold the NFT, so right-clicking won't help here. And for blue chips projects where most holders are whales, it is very valuable to be able to discuss with other whales, see what they are thinking and buying/selling. And then you also have the sense of belonging to a community, which is basically a human need, and has been mostly not fulfilled for many people because of the pandemic. So showing your profile pic, or even getting some merch and showing it in the streets is quite understandable. (PS: Algorand fans, check the MNGO project, it has one of the best community).
I think the Solana ecosystem is going to explode. So I’ve got some positions in RAY, PRISM, MNGO, SBR and plan to buy some SLC when it goes live.
I’d narrow things down by his interests. Does he wanna play games with his NFT or does he just want a PFP? If he wants a little of both, Famous Foxes or others are affordable options to what’s offered on Ethereum. There’s also Sneaky Slambets which is a future gaming NFT on SOL. On Algorand, there’s MNGO and Corvus NFTs and Smooth Brain Gorillas and Pixel Guys, to name a few. Also, fees are almost $0. But I feel what you’re saying. It’s so dang easy to get lost in the ocean of stuff out there and knowing what might be “good” like all art is so damn subjective.
Personally, looking at my Lofty rewards during the dip is something very soothing. Maybe more Algorand users have that. Algorand is discussed quite often here, but people are totally sleeping on native Algorand tokens, like Yieldly that is bound to be a major protocol on Algorand, and has only a fully diluted market cap of about $200 millions. Outrageously low. The NFT scene is also looking very promising, with blue chips still relatively affordable. (MNGO floor at 175 Algo)
Seems like for the AlgoNFT market it all starts with Twitter. Check out the MNGO project and see who they are following and who is following him. Chase some rabbit holes and that should get you into some shuffles. Also check out Monsti. Good luck, it's the wild west out there
GRT and MNGO looking juicy
SUNNY aggregator, ALDRIN, SBR, MNGO I thought to buy them and put procrastinated while my friends did. They went down 50% in one week when after the Solana conference.
NFT space is superior. Defi is user-friendly. Cheap to do anything. It's stupid meme coin Akita Inu is up like 3500% in 4 days. Entire nations are looking to build their cryto currency on it. Look up opulous, planetwatch, yieldly, MNGO, and alchemon. After decipher at the end of November i'd be baffled if price didn't move. But it's also stable as fuck so who knows. I'm very bullish on Algorand.