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An exploiter manipulated collateral prices in October to obtain tokens from Mango Markets' defi project. This resulted in a $110 million loss.
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In exchange for a proposal to govern the project, the exploiter tried to make a governance proposal that would allow him to return some of the stolen funds.
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The exploit was orchestrated by Avraham Eisenberg, which quickly became clear.
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Eisenberg spoke about the exploit in screenshots leaked from a private Discord conversation shortly before the attack.
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"I am investigating a platform that could lead to a $ 9-figure payday. Do I want to do it? He wrote.
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Someone replied that it was legal unless it was extremely illegal.
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Eisenberg declined to disclose the vulnerability to a protocol to someone who suggested it, stating that the bug bounty was probably very small.
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Eisenberg later admitted to the attack and tweeted a thread where he said he was "involved with a team which operated a highly profitable trade strategy last week."
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All of our actions were legal open markets actions.
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We used the protocol as designed even though the development team didn't fully anticipate the consequences.
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Eisenberg was arrested in Puerto Rico by the feds on December 26 after disagreeing with his assessment.
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He was charged with commodities manipulation and commodities fraud.