Mango Markets $42M Reimbursement Proposal Passes

A newly passed governance proposal on the Mango Markets DAO has delegated $42 million worth of USDC to reimburse affected users.

On Thursday, a proposal titled “Reimbursements #1” was passed unanimously. This will transfer 42 million USDC to the Developer Council Multi-sig wallet to be paid out to Mango v3 depositors. The USDC left over after the reimbursement process will be transferred back to the Mango treasury next week.

“The Mango v3 redemption website is up and depositors can claim their redemptions according to the calculations of the DAO proposal passed two days ago,” said Mango Markets in a Twitter update.

Users reported that they were successfully able to claim funds in what was a smooth process, with many saying they were able to claim their entire balance of tokens before the exploit.

The proposal to reimburse users was based on another proposal that passed earlier this week that called for the exploiter to send back stolen assets. These funds, along with funds from the Mango DAO treasury would then be used to pay off the protocol’s bad debt and make Mango depositors whole. 

On Oct. 17, the Mango Markets exploiter revealed his identity on Twitter and returned $67 million to the Mango DAO treasury. The exploiter – Avraham Eisenberg – claimed his actions were not intended to be an illegal attack on the protocol and instead described them as “a highly profitable trading strategy.”

In an interview with CoinDesk TV, former FBI Special Agent Chris Tarbell said that he was in agreement with the fact that this series of events was more a case of market manipulation than it was a DeFi hack where an exploiter gains unauthorized access to the system.

“Where I disagree is that this person had someone else’s property. In any other world, if you take my property, you’re going to be arrested for it,” said Tarbell.