FTX CEO Comments on the Mango Markets Hack
Sam Bankman-Fried, CEO of cryptocurrency derivatives exchange FTX, has said that it was not the incorrect operation of price oracles what allowed the attacker to withdraw more than $100 million from DeFi protocol of Mango Markets, but the flaws in the risk assessment system.
According to him:
“When it comes to oracles, you just have to make your own damn decision.”
An unknown attacker used a deposit of 5 million USDC to manipulate the price of the MNGO token by opening a large margin position in perpetual swaps. Due to low liquidity in the spot market, the price of the asset briefly jumped from $0.038 to $0.91. This allowed the hacker to overstate the amount of collateral in MNGO, take loans in several cryptocurrencies against it, and withdraw funds.
The FTC CEO has said:
“So, something went wrong. Oracle screwed up? I think not really. Or, rather, it depends on what kind of speculation the information was.”
According to him, the tool delivers a “raw price flow”, and then everything depends on the operation of the risk assessment mechanism.
