Share this article
DeFi Exchange Mango's $114M Exploit Was 'Market Manipulation,' Not a Hack, Ex-FBI Special Agent Says
Chris Tarbell, co-founder of crypto investigative firm Naxo, discusses why the theft was more about manipulating the platform's native token than hacking the system.
Updated Oct 20, 2022, 6:22 p.m. Published Oct 20, 2022, 6:22 p.m.
The $114 million in funds siphoned out of decentralized crypto exchange (DEX) Mango Markets wasn’t the result of a hack, according to former FBI Special Agent Chris Tarbell.
Tarbell, who previously worked at the FBI's cybercrime squad in New York, told CoinDesk TV’s “First Mover” the exploit of Mango Market was “more of a market manipulation.”
STORY CONTINUES BELOW
“This wasn’t [about] getting into a system and getting unauthorized access,” Tarbell said, referring to the strategy used by the illicit actors.
Read more: Solana-Based Decentralized Finance Platform Mango Hit by $100 Million Exploit
Earlier this month, exploiters manipulated Mango’s native token, MNGO, via the use of smart contract protocol loopholes. With no centralized entity in place, exploiters capitalized on the opportunity, according to Tarbell.
Tarbell, a cofounder of cybersecurity investigations firm Naxo, added that Mango’s case is unique because in regulated markets an alleged criminal would be arrested. One of the confessed exploiters, Avraham Eisenberg, called the exploit a “high-profit trading strategy” in a tweet before confirming he would return $67 million of the stolen funds.
Tarbell says the crypto industry needs to “clean itself up,” and regulators are likely to step in, “even if crypto doesn't want it to.”
Read more: $114M Mango Markets Exploiter Outs Himself, Returns Most of the Money
Naxo, which launched this year, focuses on cryptocurrency and other emerging technologies, according to a company statement.
Mehr für Sie
Microsoft Raises Alarm of Malware Targeting Coinbase, MetaMask Wallets
A new report from Microsoft researchers warned of malware that could steal and decrypt users’ information from 20 of some of the most popular cryptocurrency wallets.
Was Sie wissen sollten:
- Tech giant Microsoft shared a new report warning of malware that targets 20 of the most popular cryptocurrency wallets used with the Google Chrome extension.
- The malware, dubbed StilachiRAT, could deploy “sophisticated techniques to evade detection, persist in the target environment, and exfiltrate sensitive data."
- While the malware has not been distributed widely, Microsoft did share that it has not been able to identify what entity is behind the threat.
Top Stories
