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Mango Market’s DAO Forum is set to agree to a $47 million settlement with a hacker

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After exploiting $117 million on October 11, the Mango Markets community is set to strike a deal with its hacker, Allow Hacker to keep $47 million in bug bounty, according to Decentralized Finance (DeFI) Protocol Governance Forum.

The proposed terms reveal that $67 million of stolen tokens will be returned, while the hacker will keep $47 million. 98% of voters, or 291 million tokens, voted in favor of the deal, which also states that Mango Markets will not file criminal charges in the case.

With a quorum complete, a vote is likely to take place on October 15.

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“The funds sent by you and the Mango DAO treasury will be used to cover any bad debts remaining in the protocol. All depositors of Mango will be made full. By voting on this proposal, the Mango token holders agree to repay the bad debts with the treasury, waiving any potential claims against the debited accounts. niches, and will not pursue any criminal investigations or freeze funds once the tokens are returned as described above.”

On Twitter, community members reacted to the development:

The proposal was questioned in the governance forum as well, as one voter stated:

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“100% agree that making users’ money in full as quickly as possible is the top priority, but the $50 million ‘bug bounty’ is absurd. Often the scalper should recoup their costs ($15 million?) plus 10 million Dollars. Offered to the $600 million wormhole hacker. Mango could negotiate better than that, especially given that the hacker is fundamentally wrong.”

The hacker carried out the attack by manipulating the value of MNGO’s original token collateral, then taking “huge loans” from Mango’s treasury. After draining the money, the hacker settleand filled out a proposal in the Forum of Decentralized Independent Organizations (DAO) for a mango market asking for $70 million at the time.

Moreover, the hacker voted in favor of this proposal using millions of tokens stolen from the exploit. On October 14, the proposal reached the quorum required for its passage. In exchange for a settlement, the hacker asks users who vote in favor of the proposal to agree to pay the bonus, pay off bad debts with the treasury, waive any potential claims against bad debt accounts and not pursue any criminal investigation or freeze funds.