Avi Eisenberg, known in the digital finance world, was recently held accountable for a significant security incident at Mango Markets. Over $110 million were stolen as a result.
In December 2022, Eisenberg was taken into custody in Puerto Rico for allegedly committing commodities fraud, market manipulation, and wire fraud related to the exploit of Mango Markets in October 2022. During this incident, Eisenberg transferred $5 million worth of USDC stablecoin into Mango Markets.
Based on the court’s decision, Eisenberg artfully inflated MNGO’s token price, resulting in a staggering 1,000% increase within an hour. This engineered surge granted him the ability to secure more tokens by borrowing, leading to a substantial debt burden for the platform.
After a few days had passed since the incident, Eisenberg maintained that his actions were in accordance with the law and an effective trading technique, making use of the platform’s intended features. He subsequently returned $67 million to Mango Markets while keeping $47 million following a community decision.
The trial, commencing on April 9, lasted approximately one week in length. In the courthouse, Eisenberg’s legal team argued he used a legitimate trading method. However, the prosecution labeled his behavior as fraudulent, as reported by Bloomberg.
During the trial, a U.K. customer testified about being unable to withdraw funds, losing $124,000.
“The customer expressed that DAOs don’t function in that way, since there isn’t a specific person to contact, due to their decentralized nature.”
According to Bloomberg’s report, it came to light during the trial that Eisenberg had looked up information related to market manipulation and FBI surveillance on the internet. The consequences of this exploit for Mango Markets amounted to approximately $116 million in losses.
Currently, MNGO’s price has risen by 14% over the last 24 hours and is now priced at $0.0289, based on data from CoinGecko.
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2024-04-18 21:02