Hacker proposes to send back stolen MSOL, SOL, and MNGO if Mango Markets promises to pay back bad debt using USDC available in its treasury.
The hacker behind the recent exploit that drained Solana-based decentralized finance (DeFi) lending protocol Mango Markets of $100 million has proposed an ultimatum to the community.
Posting on Mango’s governance proposal platform, the hacker says they want Mango’s treasury to use its $70 million available in USDC to repay bad debt within the protocol.
This bad debt stems from a bailout that Mango Markets and rival Solana lending platform Solend put together for a large Solana whale that had $207 million in debt spread across multiple lending platforms.
At one time the whale had borrowed 88% of the available USDC on Solend.
The bailout was put together over concern that should the SOL token drop by another 20%, the whale’s positions would be liquidated, which would cause contagion and adversely impact the Solana ecosystem.
As a result of this ongoing issue with Mango Markets, the Wormhole token bridge announced that it’s pausing transfers from Solana.
Part of the hacker’s ultimatum involves a promise from Mango that they will not pursue a criminal investigation or freeze his funds.
Mango’s MNGO token is down 38% on-day.