-Avraham Eisenberg, a Mango (MNGO) markets exploiter, was recently arrested in Puerto Rico on charges bordering on market manipulation and fraud.
-The mid-October exploit saw Eisenberg making away with $110 million worth of crypto, eventually causing the platform to become insolvent.
-Eisenberg has been slammed with commodities fraud charges in the MNGO case.
Avraham Eisenberg may have thought that exploiting the Mango Markets loophole would be a quick and easy way to make a lot of money, but he was wrong. The crypto investor was recently arrested in Puerto Rico on charges bordering on market manipulation and fraud after taking advantage of the DeFi trading platform Mango Markets. The mid-October exploit saw Eisenberg making away with $110 million worth of crypto, causing the platform to become insolvent.
The crypto community has been abuzz with reactions to Eisenberg’s arrest, particularly regarding the terms of the charges. Eisenberg and his team had only “operated a highly profitable trading strategy,” and they claim they only carried out market actions that were legally permitted by the protocol. While these claims will be determined by relevant authorities, Eisenberg has been slammed with commodities fraud charges in the MNGO case.
The U.S. Justice Department has charged Eisenberg with commodities fraud, which is a federal crime. According to the criminal complaint filed against him, Eisenberg was accused of “knowingly and willfully” engaging in a scheme to defraud and manipulate the Mango Markets by exploiting a loophole on the platform. Prosecutors allege that Eisenberg was able to hide his activities and manipulate prices to his advantage.
Eisenberg has pleaded not guilty to all charges, but the U.S. Justice Department is continuing to investigate the case. The U.S. Commodity Futures Trading Commission (CFTC) is also involved in the investigation. The CFTC has stated that it is “dedicated to protecting market participants and ensuring the integrity of the derivatives markets.”
The Mango Markets case is yet another example of the risks associated with cryptocurrency trading. The incident has highlighted the need for more stringent regulations and oversight of crypto exchanges and trading platforms. It is also a reminder to crypto investors to be extra vigilant when engaging in any crypto-related activities.