Avraham Eisenberg, the accused hacker of the decentralized finance protocol Mango Markets, is looking to have his share of crypto acquired from his alleged “extremely profitable trading strategy”. On Wednesday, lawyers for Eisenberg filed a case in a New York District Court opposing a case from Mango that takes about $47 million in damages and interest initiated from the time of the October hack of Eisenberg, voided about $117 million from the protocol.
The attorneys argued that Eisenberg should not be required to give any more funds back to the DeFi platform because of a settlement deal that he attained with MangoDAO, alleging that the thing was sorted. A governance offer was issued by the Mango DAO after the voiding out of its treasury that witnessed Einsenberg having a part, $47 million, of the sealed capital as a bug bounty as well as the condition that Mango would not go for legal action.
Mango, however, said in its proceedings that the deal should be cleared out as it was done “under duress” and accused Eisenberg “was not involved in legal compensation.” The lawyers of Eisenberg rejected those things, alleging the “improper three-month delay” for Mango filing its proceedings “erodes any accused irreparable damage.” The case they call, aim to “get benefited” of Eisenberg’s December arrest in Puerto Rico by United States officials.
The incident highlights the challenge of decentralized platforms and enforcing rules and regulations in a decentralized environment. It raises questions about the effectiveness of bug bounty programs in the cryptocurrency industry. The need for effective governance structures to manage the decentralized nature of these platforms is becoming more and more apparent.
The bug bounty rewards in question, which Eisenberg was seeking to acquire, were offered by Mango Markets in December 2021 after a vulnerability was discovered in their smart contract. This vulnerability allowed an individual to extract approximately $70 million in funds from the protocol. In response, Mango Markets froze the affected markets and launched an investigation into the matter.
Mango Markets offered a ‘bug bounty’ of $500,000 to the person who discovered the vulnerability, in an effort to incentivize responsible disclosure of vulnerabilities in the platform. However, Eisenberg argued that he should be entitled to a larger portion of the funds as his alleged “extremely profitable trading strategy” enabled him to acquire more funds than the bug bounty reward.
The dispute over the bug bounty rewards raises questions about the effectiveness of bug bounty programs in the cryptocurrency industry. As the blockchain industry continues to grow and evolve, there will be a need for effective governance structures to manage the decentralized nature of these platforms. The outcome of the Mango Markets governance vote remains to be seen, but it is clear that the incident will have implications beyond the cryptocurrency industry.
The incident highlights the need for effective governance structures in the decentralized finance industry. It is becoming increasingly clear that the industry needs to develop effective regulatory frameworks to ensure that decentralized platforms are secure and that rules and regulations are enforced. This is especially important given the potential for large-scale hacks and exploits that can result in significant losses for investors and users.
The dispute between Eisenberg and Mango Markets is an example of the challenges that decentralized platforms face when enforcing rules and regulations. It is also an example of the need for effective bug bounty programs in the cryptocurrency industry. The outcome of the Mango Markets governance vote will be an important indicator of the industry’s ability to effectively manage and enforce its own rules and regulations.
In conclusion, the incident with Mango Markets highlights the challenges of decentralized platforms and enforcing rules and regulations in a decentralized environment. The dispute over the bug bounty rewards raises questions about the effectiveness of bug bounty programs in the cryptocurrency industry. As the blockchain industry continues to grow and evolve, there will be a need for effective governance structures to manage the decentralized nature of these platforms. The outcome of the Mango Markets governance vote remains to be seen, but it is clear that the incident will have implications beyond the cryptocurrency industry.
