The Solana-based decentralized finance (DeFi) platform, Mango Markets, which suffered an $117 million hack in the year 2022, has declared it will be permanently closed.
The proposal for governing the platform has been endorsed by everyone involved, as it garnered a total of 23,347,212 votes in favor of its shutdown.
On January 13, 2025, at 8 PM UTC, the platform has established a cut-off date for users to wrap up their trades as the execution of shutdown proposals approaches. To facilitate this closure, Mango V4 will initiate adjustments to its lending conditions in advance.
1. Mango Markets is closing down, so users should wrap up their positions as soon as possible.
2. The Mango v4 and Boost platforms are winding down. Borrowing on Mango will no longer be profitable starting from now.
3. Proposals have been submitted and will become effective starting January 13, at 8PM UTC.
4. More details can be found below.
— Mango (@mangomarkets) January 11, 2025
Under the revised settings, the target lending ratio has been decreased from 50% to a mere 0.1% of deposits. Additionally, the platform intends to increase interest rates significantly for significant cryptocurrencies such as SOL, USDC, USDT, ETH, MSOL, mangoSOL, and INF.
According to the recent announcement, the new roles will come with significantly stricter conditions for joining, as the collateral requirements are set to rise by a factor of 10.
The shutdown follows the October 2022 incident, where hacker Avraham Eisenberg implemented a strategy to manipulate MANGO prices. With an initial investment of $5 million in USDC, Eisenberg orchestrated a sequence of trades that significantly increased the MNGO token price by about 1,000%.
Through this maneuver, he was able to secure loans using overvalued assets as collateral, ultimately siphoning off approximately $117 million from the system.
Following the incident, the Mango Markets group initiated discussions with the perpetrator, proposing a reward for any discovered bugs as an incentive for them to restore the misappropriated funds.
In October 2024, Eisenberg found himself facing legal action due to allegations of fraud and market manipulation, potentially leading to a sentence of up to 25 years behind bars.
As a crypto investor, I’ve found myself in a peculiar situation. Despite presenting his actions as a “profitable trading strategy,” Eisenberg was trying to secure a piece of the embezzled funds through a governance proposal. It’s an odd twist, isn’t it?
The universal agreement on the governing vote for the shutdown suggests that the community has come to terms with the platform’s eventual closure.
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2025-01-12 23:43