Mango Markets shutdown marks the end of a turbulent journey, giving users until January 13, 2025, to close positions after a $117M hack and implementing strict new protocols.
Mango Markets, a DeFi platform on the Solana blockchain, is shutting down after a big hack in 2022 that caused a $117 million loss. The community voted to close the platform. Users have until January 13, 2025, at 8 PM UTC to close their positions before the shutdown.
What Led to the Mango Markets Shutdown?
Mango Markets was an important platform in the DeFi space. It allowed users to trade, borrow, and lend cryptocurrencies on the Solana blockchain. However, in October 2022, the platform was hacked. This showed weaknesses in its systems.
Avraham Eisenberg, a trader, carried out a scheme to manipulate the price of Mango’s token, MNGO. He inflated the price by 1,000%. Using only $5 million in USDC, Eisenberg borrowed against the higher price. This allowed him to take $117 million from Mango Markets.
After the hack, Mango Markets tried to talk to Eisenberg. They even offered him a reward to return the stolen money. Sadly, these efforts didn’t recover all the stolen funds. As a result, the platform decided to shut down.
Mango Markets Shutdown: What Happens Now?
With the governance proposal receiving 23,347,212 votes in favor, Mango Markets has set in motion its shutdown process. The platform has established January 13, 2025, at 8 PM UTC as the deadline for users to exit. After this deadline, all positions will be closed, and the protocol’s shutdown measures will become fully executable.
Key Changes Leading to the Shutdown
To get ready for the shutdown, Mango Markets is changing its lending rules. The target lending ratio, which was 50%, will be reduced to only 0.1% of deposits. This big change is meant to control the remaining funds and reduce risk.
Also Mango Markets will raise interest rates on major tokens like SOL, USDC, USDT, ETH, and its own tokens, such as MNGO and mangoSOL. This will make borrowing more expensive and discourage users from opening new positions. The amount of collateral needed for new loans will also increase by ten times, making it much harder for users to open new positions or make extra trades.
Mango Markets Shutdown: Legal Implications for the Hacker
The attack done by Avraham Eisenberg has led to serious consequences. In October 2024, legal actions were started against him. Eisenberg faces charges of fraud and market manipulation because of what he did during the October 2022 attack. He had called his actions a “profitable trading strategy.
Eisenberg tried to defend his actions and even asked to keep some of the stolen money through a proposal. However, his proposal was rejected, Now he could face a long prison sentence, with charges that may result in up to 25 years in prison.
What Does the Mango Markets Shutdown Mean for Users?
The Mango Markets shutdown shows the risks of using DeFi platforms, especially on new blockchains. Users who invested or borrowed money must act before the deadline. After January 13, 2025, all positions will close, and no actions will be allowed.
If you have open positions, close them before the deadline to avoid losses. Also, withdraw your assets because Mango Markets will not allow access to funds after the shutdown.
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The Future of Mango Markets
The Mango Markets shutdown marks the end of a difficult chapter for the platform. The community has made a final decision to close it. It’s still unclear if the lessons from this hack will affect future DeFi projects. Legal proceedings against Eisenberg are still ongoing. The DeFi community is watching closely. People are also wondering if this will lead to changes in regulations.
Mango Markets closing raises concerns about DeFi platforms on Solana. Recent hacks and security problems show that users must be careful with decentralized platforms. It’s important to research and understand the risks before investing in any DeFi project.
The Mango Markets shutdown marks the end of a tough journey for the platform, which was hit hard by the $117 million hack in 2022. While the community’s decision to shut down is final, users have until January 13, 2025, to close their positions. As Mango Markets shuts down, attention now turns to the legal outcome for Avraham Eisenberg and the future of DeFi platforms on Solana.
Also Read: Mudrex Halts Crypto Withdrawals: Is a Major Compliance Upgrade the Real Reason?
