Mango Protocol Hacker Wants $47 Million ‘Bounty’
CriptoFácil – Avraham Eisenberg, the man who earned over $100 million by exploring the decentralized finance (DeFi) protocol Mango Markets in October 2022, is trying to keep part of the funds as a “reward”. More precisely, 47% of the total amount.
According to a court document filed with the US District Court for the Southern District of New York on Wednesday, Eisenberg’s attorneys claimed that the explorer had already returned sufficient funds.
In that sense, the hacker returned around $67 million to the protocol after the incident. However, Eisenberg claims he is “entitled” to the remainder and wants to keep the money for himself.
Lawyers: Eisenberg entitled to $47 million
Under the motion, there was a proposed settlement from the Mango DAO, which voted to allow Eisenberg to keep $47 million for himself. The condition was that he return the $67 million to the protocol.
The DAO approved the proposal with 473,166 votes in favor, or 96.6%. Only 3.4% were against it, which set a precedent for the agreement. But this vote was non-binding, that is, it did not force the DAO to make the deal with Eisenberg.
Even so, the hacker fulfilled his part and transferred US$ 67 million to the community after the settlement. Lawyers revealed that the return sealed the terms and therefore Eisenberg is entitled to the remainder.
“Weeks later, eligible Mango Markets members received reimbursement from the Mango Markets treasury. At that point, all concerned considered the matter closed and Mr. Eisenberg heard nothing further from Mango Markets,” the lawyers said.
under duress
However, Mango Markets disagrees with the lawyers’ opinion. The protocol team claims it was under pressure during the voting period as the platform lost $116 million in assets from its users.
Mango sought the court’s assistance in recovering the $47 million in damages and interest payments as of the day of. The protocol also alleged that Eisenberg “was not involved in legal negotiations” during the recovery process.
However, Eisenberg’s lawyers have refuted the allegations, noting that the “three-month delay” for Mango to file the lawsuit “undermines any alleged irreparable harm”.
Lawyers also argued that the lawsuit is aimed at taking advantage of Eisenberg’s December arrest by US authorities.
Earlier this month, Eisenberg was charged by the US Securities and Exchange Commission (SEC) with exploiting Mango Markets and using sophisticated software to manipulate its native cryptocurrency, MANGO. The SEC sees the attack as market manipulation, which led to the arrest of the hacker.
By CriptoFacil