Mango Markets DeFi Exchange Now Taking The Initial Steps To Refund Users For Hack

The DeFi market as of late has become a victim to a relentless barrage of hacks that have hit the market like a hurricane. Almost every day in the past month has brought a new hack to light, as these bad actors try to steal increasing amounts of money from DeFi exchanges, and by extension their investors.

Of course, calling the newest wave of cybercrime to hit the DeFi space a hack would be a little inaccurate since most individuals making off with the money are not gaining access to anything.

Instead, these people are exploiting certain systems to extract cash from the DeFi exchange and easily move on. Through these exploits, these criminals have been able to get away with over $700 million in the past month alone. Over the year so far, they have been able to get away with over $3 billion.

One of the most recent exploits to happen in the market was that of Mango markets, which managed to lose over $100 million to the exploit. And as the firm is currently in talks with the exploiter to return the funds, they are currently getting ready to return the money that most individuals lost.

Returning the Money They Owed

Following the attack that rattled the entire marketplace, the firm was able to locate the exploiter and demanded that they give the funds back. The final agreement that both parties were able to come up with was that the exploiter could keep close to half of all the funds they stole, and instead return the remainder of the stolen assets in specific cryptocurrencies.

However, since Mango Markets is a decentralized autonomous organization, all of its members need to vote before following through on a specific plan. Therefore, before Mango Markets could distribute the funds, they would have to first come to a vote.

The Exploit Itself

The Mango Markets DeFi protocol is a DEX, which will use smart contracts to match trades with its investors. These contracts are completely decentralized, so no particular person is watching over them. Unfortunately, this also means that a rogue agent could sneak in and deploy as much money as they need to make the price go up.

When it does, they can easily exploit without worrying about anyone breaking in or catching them.

A Bizarre Twist of Events

Mango Markets was not looking to press charges on the individual who stole from them, as they instead wanted to quickly get back as much of the money that was stolen. After a heated debate, both parties were able to come to an agreement, and the exploiter kept close to half of the money they took, whereas the company received a large chunk of their money back.