Solana-Based Altcoin Hacked: Price Crashed!

A second $100 million hack took place this week following the Binance bridge exploit. Solana (SOL)-based Mango Markets lost $100 million in funding due to an exploit. Mango Markets tweeted on Tuesday evening that a hacker had stolen funds from Mango through oracle price manipulation. Here are the details…

Solana-based cryptocurrency hacked

Mango Markets was the victim of the latest attack this week. Less than a week after the BNB Chain exploit, which used a bridge to create millions of new BNBs, the second attack took place. This nine-digit hack has rocked the crypto space, this time with Solana-based Mango Markets. The protocol faced a massive influx of over $100 million after a hacker exploited the project through price manipulation and high leverage.

According to blockchain audit website OtterSec, the attacker temporarily increased the value of their collateral. He then took a loan from the Mango treasury. Mango Markets focuses on spot margin and perpetual futures. As we have reported as Kriptokoin.com, it is a platform on the Solana Blockchain. Mango Markets is managed by Mango DAO.

Details of the attack

Alerting the community about the hack, OtterSec said the attacker managed to manipulate the Mango collateral. Thus, he stated that they seized a large amount of funds from the treasury. The platform’s team said it is investigating the whereabouts of the exploit. Mango Markets said in a tweet that it has disabled front-end deposits. Initially, the team asked users not to deposit funds until the situation was clear. Meanwhile, Joshua Lim of Genesis Global Trading gave more details on how the hacker orchestrated the hack. According to Lim, the attack took place as follows:

• At 6:19 p.m., the account with 5mm USDC collateral was financed by the attacker.
• The attacker then offered 483 million units of MNGO (perpetual contracts) on the Mango Markets order book.
• At 6:24 p.m., the attacker funded another account with 5 million USDC collateral to purchase these 483 million units of MNGO for $0.03 per unit.
• The attacker started moving the Mango spot market price at 6:26 PM. It puts the price at $0.91 and the value of 483 million MNGOs to $423 million.
• The attacker then took out a $116 million loan, leaving Mango’s treasury with a negative balance of 116.7 million. Assets discharged included USDC, MSOL, SOL, BTC, USDT, SRM and MNGO.
• In response, Mango Markets said it was disabling deposits and taking steps to freeze third-party funds.

MNGO price dropped

The MNGO token has been negatively impacted by these developments. The cryptocurrency has lost 40 percent in the last 24 hours. At the time of writing, the coin is changing hands at $0.0240. It fell from $ 0.08711 to $ 0.01744 on the day.