Robert Steinadler, 5 months ago

Hacktober: Mango Markets and TempleDAO exploited

Statistically speaking, October is one of the best-performing months for Bitcoin. While the market is waiting for inflation data to be presented, the “Uptober” became the “Hacktober” this week. Two DeFi protocols got hacked this week and hackers damaged investors for millions of Dollars again.

What happened during the recent events and what makes one case specifically obscure?

Hacker offers Mango Markets to pay back stolen tokens

Mango Markets is a protocol for margin and derivatives trading. On October 11 a hacker managed to manipulate the spot price for the native MNGO token. At the same time, he had a leveraged position open which in the end was a bet that the MNGO price would increase.

Once he successfully managed to manipulate the price, he took out a loan on his position without closing it. This way he was able to withdraw several different crypto assets that were combined worth more than $100 million.

After that, he made a proposal on Mango Markets DAO offering to pay parts of his loot back under the condition that he could keep the rest without legal consequences. While some observers simply chose to laugh at the situation, the team behind the protocol is in a desperate position. Should they refuse, there is no way of getting the tokens back. The hacker on the hand has also nothing to gain since his address is already tainted.

TempleDAO was also hacked

On the same day, TempleDAO faced also an exploit that was possible due to a vulnerability in its code. This caused another $2 million in damages. This was not as spectacular as the exploit of Mango Markets, but this case proves again how important audits are.

The DeFi community is facing yet another blow and both were not the only incidents this month. Chainalysis registered 11 hacks this month resulting in a total loss of $718 million. Taking other hacks and exploits into account, the DeFi industry lost billions of Dollars in the past two years.

These numbers are often used to show that DeFi doesn’t work and is a dangerous investment. What critics don’t take into account is the sheer number of Dollars that are managed successfully and securely. Investors should keep in mind that many of the financial products are highly experimental and more established applications offer higher security standards than smaller competitors. It is expected that not only the value of DeFi will increase within the next 10 years, but also security standards as the industry constantly learns from these incidents.

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
Authorities closed ChipMixer: Crime and Bitcoin don’t go together

Mar 16, 2023

Many people believe that Bitcoin is anonymous and that nobody can see who is behind each Bitcoin address. That is true to some extent but with blockchain analysis there is a tool available that can reveal the origin of funds. Most crypto companies use such services to block funds that originate from dubious sources such as Darknet marketplaces. Criminals are creative and responded with so-called Bitcoin tumblers to disguise their digital trails.

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • About LiteBit
  • Careers
  • Support
  • Sell
  • News
  • Education
  • Affiliates
Subscribe for updates

Sign up to stay informed via our email updates

Explore popular coins
© 2023 LiteBit - All rights reserved