Mango Markets Exploiter Arrested In Puerto Rico

Key Points:

• The Justice Department has arrested Avraham Eisenberg, who has been known as the Mango Markets exploiter.
• Eisenberg was charged with commodities fraud and commodities manipulation.
• However, there has been no indication of whether the rest of his team faces criminal prosecution.

Avraham Eisenberg has been detained by federal authorities in Puerto Rico for using the decentralized exchange Mango Markets illegally, and charges have been filed against him in the U.S. District Court for the Southern District of New York.

On October 13, Coincu reported an investigative article about the $114 million hack from the Defi Mango Markets platform built on Solana is being shared widely, revealing the identity of the alleged perpetrator of the hack named Avraham Eisenberg

Since the Mango Markets attacker’s portrait was revealed, Avraham Eisenberg, after which he called the exploit a “profitable trading strategy” and said his actions were legal. He has returned the funds, in accordance with the governance vote.

A week after the hacker was revealed, DeFi platform Mango issued a document stating that the Mango v3 compensation and redemption website has been launched. Affected users can claim compensation based on the calculation results of the previously approved DAO proposal.

On December 27, the exploiter Avraham Eisenberg (Avi) was arrested in Puerto Rico and charged with market manipulation offenses.

According to the lawsuit, Eisenberg was accused of commodities fraud and commodities manipulation.

Overall, Eisenberg oversaw a team that exploited Mango Markets in October for $114 million by inflating the value of MNGO, the exchange’s native cryptocurrency. By taking a sizable position in MNGO and driving up its price by 1,300%, Eisenberg was able to use the same platform to borrow additional tokens with bigger market caps and more stable values without having to pay them back.

Since the value of MNGO dropped, Eisenberg no longer had enough value to satisfy the debts he had incurred in those other tokens. At the time, he identified himself as the user responsible for the enormous price increase in MNGO, claiming that he was “sing the protocol as designed, even if the development team did not fully anticipate all the consequences of setting parameters the way they are.” Following that, Mango users voted to let him keep $47 million of his bounty while returning the remaining $67 million.

Despite the aforementioned fact, there has been no indication of whether the rest of his team faces criminal prosecution.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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