Mango Maker attacker looks to acquire disputed funds

The accused hacker of the decentralized finance protocol Mango Markets, Avraham Eisenberg is looking to have his share of crypto acquired from his alleged “extremely profitable trading strategy.”

The lawsuit

On Wednesday, lawyers for Eisenberg filed a case in a New York District Court opposing a case from Mango that takes about $47 million in damages and interest initiated from the time of the October hack of Eisenberg, voided about $117 million from the protocol.

The attorneys argued that Eisenberg should not be required to give any more funds back to the DeFi platform because of a settlement deal that he attained with MangoDAO, alleging that the thing was sorted.

A governance offer was issued by the Mango DAO after the voiding out of its treasury that witnessed Einsenberg having a part, $47 million, of the sealed capital as a bug bounty as well as the condition that Mango would not go for legal action.

“Eisenberg shifted capitals approximating $67 million to Mango Markets,” the lawyer wrote and further stated:

“Many weeks after, entitled Mango Markets’ participants got reimbursement from the Mango Markets treasury. At that pace, all indulged acknowledged this topic closed and Mr. Einenberg was not ready to hear anything from Mango Markets.”

Mango, however, said in its proceedings that the deal should be cleared out as it was done “under duress” and accused Eisenberg “was not involved in legal compensation.”

The lawyers of Eisenberg rejected those things, alleging the “improper three-month delay” for Mango filing its proceedings “erodes any accused irreparable damage.” The case they call, aim to “get benefited” of Eisenberg’s December arrest in Puerto Rico by United States officials.

One more incident occurred in mid-December 2021, when pinky discovered a vulnerability in Mango Markets’ smart contract and used it to extract approximately $70 million in funds. Mango Markets responded quickly by freezing the affected markets and launching an investigation into the matter. They also offered a ‘bug bounty’ of $500,000 to the person who discovered the vulnerability, in an effort to incentivize responsible disclosure of vulnerabilities in the platform.

Conclusion

In conclusion, the situation with Mango Markets challenges decentralized platforms and enforcing rules and regulations in a decentralized environment. The dispute over the bug bounty rewards raises questions about the effectiveness of bug bounty programs in the cryptocurrency industry. As the blockchain industry continues to grow and evolve, there will be a need for effective governance structures to manage the decentralized nature of these platforms. The outcome of the Mango Markets governance vote remains to be seen, but it is clear that the incident will have implications beyond the cryptocurrency industry.