Mango Markets Fresh Off A 100 $Million Loss

In today's edition of YIYL (You Invest, You Lose), we go dumpster diving in the shitcan that is Solana, I don't know how many more times I'll be dunking on this turd of an ecosystem, but as long as they keep handing me ammo, imma keep shooting. Fresh off the wreckage of a node bringing down the network and an NFT scam to one of their popular wallets, one of their DEFI platforms went tits up in one of the most spectacular ways.

Mango Markets, a Solana-based Defi project offering borrowing, lending, and leverage trading, had some rotten code in its batch of juicy-juicy returns and a user was able to pick out a ripe old profit to the tune of more than $100 million and we don't know if this is the final damage as the leak continues.

A user was apparently able to easily manipulate the supposed value of their collateral on the platform, allowing them to take out massive loans from the project treasury.

Once the attacker was able to make the loan they used it to drain the pool leaving Mango's treasury with a negative balance of -116.7 million. Assets drained include USDC, MSOL, SOL, BTC, USDT, SRM, and MNGO, wiping out all of Mango's liquidity.

If you're interested in following the carnage in real time, You can watch Mango Markets wallet live here

In response, Mango Markets says it has disabled deposits and is taking steps to have third-party funds frozen, but more on that later.

https://twitter.com/mangomarkets/status/1579976051878658048

Can we get our money back mr hacker?

Mango Markets posted on Twitter to urge users not to deposit into the project, and asked the hacker to contact them "to discuss a bug bounty".

Since the message wasn't heard by all participants, those continuing to add capital to Mango funds would become liquidity providers for the exploit as the attacker continued to drain funds.

So far, Mango Markets pleading with the user to give back their funds has fallen on deaf ears and now the search is on to dox the user.

Talk about the price

Mango like every shitcoin project on the Solana blockchain offers users it's own token too, which has pretty fuckall use case, just you know you gotta have a token, and I guess it comes in handy for sentiment, and as we can see having your treasury drained is not good for the price.

MNGO token price - coingecko.com

Mango's MNGO token was down over 42% in the past 24 hours amid fears that the platform may have been exploited, according to price data from CoinGecko.

In my opinion it's holding up surprisingly well considering the main counter-party is insolvent, so technically the token should be worth zero, but in shitcoin land, trading dead projects is something people do, so someone thinks they're getting a steal and hoping MNGO recover their funds and they can profit off the recovery.

FTX to the rescue

A Twitter user noted that the attacker funded their wallet from FTX, prompting FTX CEO Sam Bankman-Fried to respond that the company is investigating and could provide a lead to Mango Markets.

A real novice move, if they are using a publicly dox, 'd wallet, it would be so easy to spin up a new wallet and coinjoin funds and move them to a new wallet to at least have some measure of deniability, or they could have gained access to a KYC dox'd wallet and the user is none the wiser, who knows at this point?

https://twitter.com/ChenWainuo/status/1579981538262851584

All we do know is that if your money is on Solana, it's up for grabs and there are people ready and waiting to take your funds as a donation.

Sources:

• decrypt.co
• coindesk.com

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