The $114 million in funds siphoned out of decentralized crypto exchange (DEX) Mango Markets wasn’t the result of a hack, according to former FBI Special Agent Chris Tarbell.
Tarbell, who previously worked at the FBI’s cybercrime squad in New York, told CoinDesk TV’s “First Mover” the exploit of Mango Market was “more of a market manipulation.”
“This wasn’t [about] getting into a system and getting unauthorized access,” Tarbell said, referring to the strategy used by the illicit actors.
Read more: Solana-Based Decentralized Finance Platform Mango Hit by $100 Million Exploit
Earlier this month, exploiters manipulated Mango’s native token, MNGO, via the use of smart contract protocol loopholes. With no centralized entity in place, exploiters capitalized on the opportunity, according to Tarbell.
Tarbell, a cofounder of cybersecurity investigations firm Naxo, added that Mango’s case is unique because in regulated markets an alleged criminal would be arrested. One of the confessed exploiters, Avraham Eisenberg, called the exploit a “high-profit trading strategy” in a tweet before confirming he would return $67 million of the stolen funds.
Tarbell says the crypto industry needs to “clean itself up,” and regulators are likely to step in, “even if crypto doesn’t want it to.”
Read more: $114M Mango Markets Exploiter Outs Himself, Returns Most of the Money
Naxo, which launched this year, focuses on cryptocurrency and other emerging technologies, according to a company statement.