Mango DAO Votes to Allow The Hacker keep $47 Million as “Bug Bounty”

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DeFi
Mango DAO Votes to Allow The Hacker keep $47 Million as “Bug Bounty”

Mango DAO, a Solana Decentralized Finance Protocol, has reached an agreement in which the fraudster responsible for the recent exploit will return $67 million in virtual currencies and keep $47 million as a bug bounty.

The Stats at the End of the Poll

The Solana DeFi protocol has dominantly voted in favour of a deal with the hacker responsible for the most recent Mango Dao attack. The attack was allegedly reported on October 12th, 2022. The attacker is suspected of having made away with an estimated $110 million from the protocol pushing for the community vote.

The community cast more than 489 million votes. The majority of votes agreeing with the proposal account for 96.6% of the total votes cast (473,166,649 votes). The number of NO votes for members disagreeing with the proposal accounts for the remaining 3.4% (16,601,348 votes) at the end of the voting process.

The Hack Turns into a Bug Bounty Chase

The passed proposal by Mango DAO calls for the hacker to revert approximately $67 million in tokens. The Decentralized Autonomous organization stated that the funds would pay off bad debt on the protocol and make all Mango Markets consumers whole. 

The hacker is expected to retain the rest of the remaining amount as a bug bounty. Since the vote has gone through, the hacker, in compliance, is expected to revert part of the funds, keeping $47 million for exposing the vulnerability. This will be the largest bug bounty ever issued in crypto history to expose vulnerable loopholes on DeFi protocols.

As part of the proposal, Mango DAO stated that the chase for the hacker would end once the hacker submitted the lion’s share back to the ecosystem. No further criminal investigations will continue. Mango DAO will also cut all attempts to freeze the stolen funds leaving them in full custody and under the discretion of the malicious hacker.

The Attacker raised a Similar Proposal

After the attack happened, the attacker proposed to the community.

The passed proposal terms of the agreement are very similar to the attacker’s first proposal. The initial terms by the attacker stated that he was to return some of the stolen mSOL, SOL, and MNGO altcoins to cover any residual amount owed by Mango Markets users. The intruder also demanded that the DAO consent to not pursuing criminal charges and freezing funds once the two parties completed the accord.

Unlike the currently passed proposal, the attacker tried to sway the overall result of the first recommendation. The hacker attempted to vote in favour of the idea with millions of stolen tokens. In a nutshell, the attacker had no control over the votes cast on the second poll, unlike the first one the attacker had suggested.

What Will Happen Next?

Since the Mango DAO community completed the poll a few hours ago, the cryptocurrency community is holding tight for the outcome. There will be a triumph of relief if the attacker accepts the deal and agrees to give back some of the stolen funds. Otherwise, Mango DAO will have to wait for the hacker’s reaction.

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Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.