Crypto Trader Admits Involvement in Solana-Based DeFi Protocol’s Recent $100,000,000 Loss
A crypto trader has stepped into the spotlight in an attempt to clear the air about how Mango Markets, a Solana-based decentralized finance (DeFi) trading platform, recently lost $100 million.
Avraham Eisenberg, who runs a trading firm and describes himself as a “digital art dealer”, went public on Saturday as the mastermind behind the “legal” exploitation of Mango.
Eisenberg says he never saw the incident as a hack, but as a trading strategy that outsmarted a vulnerable protocol. The crypto trader blames Mango’s developers for not foreseeing last week’s events.
“I was involved with a team that ran a very profitable trading strategy last week.
I believe that all our actions were legal actions in the open market, using the protocol as designed, even if the development team did not fully foresee all the consequences of setting parameters as they are.
Unfortunately, the exchange on which this took place, Mango Markets, became insolvent as a result, and the insurance fund was insufficient to cover all liquidations. This meant that other users could not access their money.
To remedy the situation, I helped negotiate a settlement agreement with the insurance fund with the aim of making all users whole as quickly as possible, as well as recapitalizing the stock exchange.”
Shortly before Eisenberg came forward, Mango Markets offered him a deal to return a little less than half of the leveraged funds as a bounty.
Mango asked for around $47 million worth of crypto to be returned to the platform, including Bitcoin (BTC), Solana (SOL), Serum (SRM), Ethereum (ETH), FTX Token (FTT), Binance Coin (BNB), Mango ( MNGO), Marinade Staked Solana (mSOL) and USD Coin (USDC).
At the time of writing, it is not clear whether Eisenberg has returned the funds or not. It is also unclear whether any laws were broken by Eisenberg during the exploit.
As part of the proposal, Mango Markets has agreed not to pursue any criminal investigation.
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Featured image: Shutterstock/Sergey Nivens
