Mango Markets hacker arrested on charges of fraud and manipulation

The United States Department of Justice announced the arrest of Mango Markets exploiter Avram Eisenberg in Puerto Rico.

Eisenberg is accused of executing the $110 million Mango Markets crypto exchange exploit, take unfair advantage of In October of this year. The charges against the hacker are pending in the Southern District Court of New York.

accused of fraud and manipulation

Damian Williams, the US Attorney for the Southern District of New York, and Assistant US Attorneys Thomas Burnett and Noah Solowiejsky ordered Eisenberg’s arrest.

Justice Department’s complaint dated 27 December states,

“I have attached the complaint 22 Mag. 10337, which alleges Avraham Eisenberg with offenses of market manipulation. The complaint is sealed. Last night, the defendant was arrested in the District of Puerto Rico and later today A proposed order quashing the complaint is enclosed for the consideration of the Court.”

22 Mag. Eisenberg is charged with two counts in the 10337 filing. Count one is for commodity fraud, while count two is for commodity manipulation.

Avram Eisenberg admitted to being the mastermind behind the over $100 million exploit on the Mango Markets platform after it was hacked in October. Interestingly, he also defended himself by arguing that the platform was actually hacked all along. Within range of law:

“I believe that all of our actions were legal open market actions, using the protocol as designed, even though the development team did not fully anticipate all the consequences of setting the parameters planted.”

The Mango Markets Exploit Was a Team Effort

Avraham Eisenberg worked with, among others, leading a team to execute the exploit of the decentralized exchange Mango Markets. They manipulated the price of the native MNGO token to buy massive positions. The hacker artificially inflated the price by up to 1,300%, allowing him to borrow other coins as collateral. At the time, he said he was negotiating a settlement agreement with the Insurance Fund. But, he never showed any intention of returning it.

The US Department of Justice insisted on the arrest request:

“Avraham Eisenberg, defendant, knowingly and willfully attempted to manipulate the price of an item in interstate commerce, and for delivery in the future and subject to the rules of a registered entity, and for an exchange, To wit, Eisenberg engaged in a scheme involving the deliberate and artificial manipulation of the price of perpetual futures contract on a cryptocurrency exchange called Mango Markets.

Reported by BeInCrypto on the incident in late October when Eisenberg claimed to “not care” about the criticism he received for his actions.

He also argued that lending platforms are willing to lend at the current price of a token. Eisenberg in November tried to to repeat the abuse Come on But failed.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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