$100,000,000 Drained From Solana-Based Crypto Trading Platform Mango Markets In DeFi Attack
A decentralized exchange (DEX) on the Solana (SOL) blockchain, Mango Markets, says an attacker made off with tens of millions of dollars worth of crypto assets following an exploit on the platform.
Mango markets claims that an attacker manipulated the price of its utility token, Mango (MNGO), upwards within minutes before borrowing and withdrawing roughly $100 million worth of cryptoassets.
According to the Solana-based DEX, the attacker initiated the price manipulation by funding two accounts with the USDC stablecoin and then buying an “oversized position” in the derivative of Mango Markets’ utility token, MNGO-PERP.
Mango Markets says that the price of the utility token subsequently increased, a fact that was recorded by Solana’s data stream chain providers Switchboard and Pyth.
Once the value of MNGO had exploded, Mango Markets says the attacker then borrowed the highest possible amount using the unrealized profit from his long position in the utility token as collateral. The attacker withdrew the loot in Bitcoin (BTC), Solana (SOL) as well as USDC and USDT stablecoins.
“Two accounts funded with USDC took an oversized position in MNGO-PERP.
Underlying MNGO/USD prices on various exchanges (FTX, Ascendex) experienced a 5-10x price increase within minutes.
This caused switchboards and Pyth oracles to update the MNGO reference price to over $0.15.
This caused a further mark-to-market increase in the value of the account that was long MNGO-PERP from the unrealized profit.
Which allowed the account to borrow and withdraw BTC (sollet), USDT, SOL, mSOL, USDC out of the Mango protocol.
This maxed out the loan available from the corresponding deposits of $190 million on the platform.
The net worth taken out of the account was about $100 million equivalent at the time.”
Mango Markets has listed its priorities are to prevent further unnecessary losses, to ensure that the depositors of Mango are made whole and to try to save values and rebuild the protocol.
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Featured image: Shutterstock/Wutana Thongkuanluek
