Mango Market exploiter says action was ‘legal’

Mango Market exploiter says action was ‘legal’

Mango Market exploiter says action was ‘legal’

The Mango community will deliver a record $47 million bounty to the exploiter.

Avraham Eisenberg stated that he was the mastermind behind the exploitation of the $114 million mango market, adding that his actions were legal.

In an Oct. 15 tweet, Eisenberg said that he and his team “used the protocol as designed, although the development team did not anticipate all the consequences of setting the parameters as they are. He also called the exploit a “highly profitable business strategy.” Eisenberg has not revealed the identity of the other members of his team.

Exploiter has negotiated an agreement for Mango users to be complete

The Mango market operator stated that he was trying to help DeFi protocol users by “(negotiating) a settlement agreement with the insurance fund with the goal of filling up all users as fast as possible.” and to recapitalize the stock market”. He went on to say that his remedy is similar to how automatic deleveraging on stock exchanges works. Exchanges use automatic deleveraging mechanisms to manage risk when their insurance fund is insufficient to cover a bankrupt user’s position.

Meanwhile, Eisenberg had spent $10 million of his own money in to inflate the value of the Mango token, allowing him and his team to successfully exploit the DeFi protocol. The Mango community was divided over the news that the exploiter could keep about 40% of the fund (about $47 million) as a reward: an industry record.

In general, the trend in the industry is for monetizers to receive around 10% of monetized funds. CryptoSlate has reached out to Eisenberg for comment but has not received a response at the time of publication.

 

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