Avi Eisenberg, also known as Avraham Eisenberg, has been determined to have committed fraud regarding the $110 million hacking incident at Mango Markets, as reported by Bloomberg.
Based on reports, a federal jury in New York found Eisenberg guilty of committing wire fraud, commodities fraud, and commodities manipulation during the course of the scheme.
Beginning on April 9, the trial for Eisenberg lasted approximately one week. However, in December 2022, Eisenberg was apprehended in Puerto Rico. Prosecutors leveled charges against him involving commodities fraud, market manipulation, and wire fraud related to the hack of Mango Markets, a decentralized cryptocurrency exchange.
In October 2022, the price of MANGO, the native token of Mango Markets, was artificially inflated, leading to exploitation of the platform. A borrower took advantage of this situation and received funds that they failed or refused to repay, resulting in financial losses for Mango Markets.
A crafty move involved depositing $5 million in stablecoins into Mango Markets, which triggered an extraordinarily lengthy contract that amplified MANGO’s price by a thousand percent. The cunning manipulator then took out large loans, amassing a substantial debt, before making off with the stolen funds.
Approximately a week after the occurrence, Eisenberg acknowledged fault and disclosed that his actions aligned with a successful, lucrative trading strategy which utilized Mango Markets according to plan.
Afterward, Eisenberg returned $67 million in cash to Mango Markets, while the protocol’s community allowed him to keep $47 million following a governance ballot. Unfortunately, the fraudulent scheme led to approximately $116 million in losses for Mango Markets.
At the trial, Eisenberg’s legal team maintained that his actions represented a successful trading technique. However, the prosecution described it as blatant deception based on information from Inner City Press.
At Eisenberg’s trial, a British client stated they had lost $124,000 and were unable to recover their funds. When Eisenberg’s legal representation inquired, they asked if Mango Markets had suspected that the money had been stolen.
According to Inner City Press, the witness expressed disagreement with how DAOs were being described, stating “That’s not how they function.” They further added, “There’s no central authority to contact.” The witness clarified that Decentralized Autonomous Organizations don’t operate in that manner. It was also uncovered that Eisenberg had looked up terms like “illegal market manipulation” and “FBI investigation.”
Read More
Sorry. No data so far.
2024-04-18 21:58