Mango Markets, the DeFi platform based in Solana that suffered a $117 million exploit in 2022, has announced that it is completely closed.
The platform management proposal has received unanimous approval, with 23,347,212 votes supporting the closure.
The platform has set January 13, 2025, at 8 PM UTC as the date for users to close their positions when the closing recommendations take effect. In preparation for the closure, Mango V4 will begin making changes to its lending limits.
The parameters of the new protocol include a reduction in the target loan ratio from 50% to 0.1% of investments. The platform also implements interest rate hikes across major cryptocurrencies, including SOL, USDC, USDT, ETH, MSOL, mangoSOL, and INF.
According to the announcement, barriers to new positions will be significantly higher, with collateral requirements increasing by a factor of ten.
The shutdown follows the October 2022 leak, where attacker Avraham Eisenberg schemed to manipulate MANGO's prices. Using only $5 million in USDC as initial capital, Eisenberg executed a series of trades that artificially increased the price of the MNGO token by approximately 1,000%.
This treatment allowed him to borrow against inflated collateral values, draining $117 million from the protocol.
After the attack, the Mango Markets team tried to negotiate with the attacker, offering a bug bounty in exchange for the return of stolen money.
The trial against Eisenberg began in October 2024, with charges of fraud and market manipulation that could result in up to 25 years in prison.
Even though he initially defended his actions as a “highly profitable trading strategy,” Eisenberg had tried to negotiate keeping a portion of the stolen money through a regulatory proposal.
The unanimous management vote supporting the closure is an indication of how the community accepts the fate of the platform.
