Solana-Based Mango Markets Hacker Wants to Keep $47M

Paigambar Mohan Raj

The legal team of Mango Markets’ hacker, Avraham Eisenberg, has objected to Mango Labs’ effort to recover the remaining cash. Mango Labs is the team behind the Solana-based trading firm.

Solana (SOL) has often faced criticism for the number of hacks that have taken place on the network. Mango Markets is one such project which was attacked in October of 2021. Eisenberg used the trading platform to carry out a series of transactions. The transactions increased the value of tokens in a different account. The amount established in the second account was used as collateral for a loan of almost $110 million in various cryptocurrencies.

Eisenberg referred to the action as a “highly profitable trading strategy.” However, it also had the unintended consequence of crippling the Mango Markets platform and rendering it bankrupt.

Eisenberg was detained by the Justice Department in December and accused of offenses including market manipulation. To these counts, Eisenberg has entered a not-guilty plea.

Why does the hacker of Solana-based platform want to keep the funds?

Eisenberg agreed to refund $67 million while collecting a bug reward of $47 million as part of an arrangement with the Mango DAO. The Mango DAO is a decentralized community of token holders who retain voting rights.

However, Mango Labs filed a lawsuit against Eisenberg in January to reclaim the $47 million as well.

Mango Labs asserts that Mango Markets had no choice but to vote in favor of the Settlement Agreement, as per the lawsuit’s opposition. The document claims that Mango Labs has no proof to back up this argument. As per the document, in its claim to the $47 million, Mango Labs offers only one argument: duress.

Claims of duress, according to Eisenberg’s legal team, are “more than three months too late.” As per the document, Mango Labs saw that third parties were making claims against Eisenberg and devised a plan to take advantage of the situation.