{"id":68509,"date":"2022-10-13T10:40:19","date_gmt":"2022-10-13T07:40:19","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=68509"},"modified":"2025-09-07T14:27:57","modified_gmt":"2025-09-07T11:27:57","slug":"sam-bankman-fried-comments-on-mango-markets-hack","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sam-bankman-fried-comments-on-mango-markets-hack\/","title":{"rendered":"Sam Bankman-Fried comments on Mango Markets hack"},"content":{"rendered":"<p>FTX chief executive Sam Bankman-Fried said that <a href=\"https:\/\/forklog.com\/en\/news\/hacker-stole-more-than-100-million-from-mango-markets-defi-platform\">to withdraw more than $100 million<\/a> from the Mango Markets DeFi protocol by the attacker was not caused by faulty price oracles, but by weaknesses in the risk-assessment system.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">1) When it comes to oracles,<\/p>\n<p>you just have to make up your own damn mind <a href=\"https:\/\/t.co\/7kZATSLpQM\">pic.twitter.com\/7kZATSLpQM<\/a><\/p>\n<p>\u2014 SBF (@SBF_FTX) <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1580170203664904195?ref_src=twsrc%5Etfw\">October 12, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWhen it comes to oracles, you just have to make up your own damn mind,\u201d he wrote.<\/p>\n<\/blockquote>\n<p>An unidentified actor 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 on the spot market, the asset price briefly jumped from $0.038 to $0.91. This allowed the attacker to inflate the MNGO collateral, borrow in several cryptocurrencies against it, and withdraw the funds.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cSo something went wrong. Did the oracle mess up? I think, actually, no. Or, rather, it depends on what information was being speculated,\u201d he said.<\/p>\n<\/blockquote>\n<p>According to him, the instrument provides a \u201craw price feed,\u201d and the rest depends on how the risk-engine operates. As an example, he cited the operation of a similar system on the FTX platform. It does not account for price increases of more than 20% over a five-minute period.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn particular, while the indexed price [MNGO] on FTX rose by roughly 100% at its peak, on some exchanges the move (temporary) was +900%,\u201d noted the head of FTX.<\/p>\n<\/blockquote>\n<p>He also stressed that the exchange charges a higher margin on collateral the larger the position. If someone were to borrow $500 million in MNGO, the platform would require a fully funded collateral of 500% of the amount, Bankman-Fried said.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe reason, essentially, is that large positions \u2014 especially in illiquid tokens \u2014 can have a significant impact on the price,\u201d he added.<\/p>\n<\/blockquote>\n<p>Returning to oracles, the FTX chief noted that the tool provides accurate information, but its processing and the assessment of position safety is the job of the risk engine. The mechanism should not operate in \u201cmanual mode,\u201d but it needs to have a set of \u201cconservative rules\u201d to respond to large price movements, Bankman-Fried said.<\/p>\n<p>In April 2022, Waves Platform CEO Alexander Ivanov accused Alameda Research of <a href=\"https:\/\/forklog.com\/en\/news\/waves-founder-accuses-alameda-research-of-manipulating-waves-token\">manipulating the WAVES token price<\/a>. The founder of the company called the statements \u201ca poorly cobbled conspiracy theory.\u201d<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX chief executive Sam Bankman-Fried said that {{AOPEN_1}}to withdraw more than $100 million{{ACLOSE_1}} from Mango Markets DeFi protocol by the attacker was not caused by faulty price oracles, but by weaknesses in the risk-assessment system.<\/p>\n","protected":false},"author":1,"featured_media":68510,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1389,1138,1403],"class_list":["post-68509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockchain-oracles","tag-opinions","tag-sam-bankman-fried"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=68509"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68509\/revisions"}],"predecessor-version":[{"id":68511,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/68509\/revisions\/68511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/68510"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=68509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=68509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=68509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}