Solana DeFi platform, Mango Markets, drained over $100M in a hack

Mango Markets has been exploited and drained more than $100 million worth of cryptocurrencies. The decentralized finance (DeFi) platform was exploited after an attacker manipulated the price data of the native token before taking loans against holdings.

Mango Markets drained over $100M

Mango Markets is a DeFi platform based on the Solana blockchain. The platform has been hit by an exploit that drained more than $100 million after an attacker exploited price oracle data. The exploit allowed them to take cryptocurrency loans that were not collateralized.

OtterSec, a blockchain security company, first detected the attack. The blockchain security company tweeted that the exchange had lost more than $100 million because of the attacker manipulating the price of MNGO, the native token of the Mango DeFi platform. The attacker later took out loans from the Mango treasury.

It appears the attacker was able to manipulate their Mango collateral. They temporarily spiked up their collateral value, and then took out massive loans from the Mango treasury. pic.twitter.com/2IJrB9RcEJ

— OtterSec (@osec_io) October 11, 2022

In the tweet, OtterSec added, “It appears the attacker was able to manipulate their Mango collateral. They temporarily spiked their collateral value and then took out massive loans from the Mango treasury.”

The team at Mango Markets acknowledged the exploit and warned users not to deposit funds until the situation was clear. The team has also asked the attacker to reach out to them to receive a bug bounty.

The platform has also confirmed that the attack happened because of manipulating the price oracle. The price oracle is a price data feed highlighting the value of the MNGO token. The platform also said that it disabled deposits as it continued investigating the incident. The company added that it would disable deposits as a precaution.

The news of the exploit has led to the MNGO token’s price drop. Over the last 24 hours, MNGO has plunged by around 48%. At the time of writing, the token was trading at $0.0226, according to data from CoinGecko.

The account of the exploiter on the platform shows three large withdrawals. The withdrawals include $50 million worth of USDC, more than $26.7 million worth of Marinade Staked SOL (mSOL), and around $24 million worth of SOL.

More than $14.7 million worth of MNGO tokens were also withdrawn from the protocol. The Mango DeFi platform has also said that it was taking the necessary steps to have third-party platforms freeze the funds stolen by the attacker.

QANplatform suffers another exploit

Mango Markets is not the only platform that has suffered an exploit recently. The QANplatform blockchain was also exploited on October 11. The exploit happened after the Ethereum bridge was drained around $1.89 million worth of QANX tokens. The QANplatform has also said that it was investigating the matter.

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