SEC Is Also Currently Investigating The Price Manipulation Behavior Of Mango Exploiter
- Avraham Eisenberg, a self-confessed Mango Markets exploiter, is also being looked at by the SEC for his part in the extraction of $110 million from the decentralized system.
- Previously, the CFTC and the Department of Justice have already accused Eisenberg of a number of charges related to market manipulation.
Avraham Eisenberg, a self-confessed Mango Markets exploiter, is also being looked at by the US Securities and Exchange Commission for his part in the extraction of $110 million from the decentralized system.
Commodity Futures Trading Commission (CFTC) commissioner Kristin Johnson mentioned the simultaneous probe by the SEC in a statement released on Monday.
As Coincu reported, the CFTC filed its charges against Eisenberg, accusing him of a rogue past, price manipulation, and price hype on Mango Markets.
A manipulative or misleading method was allegedly used by Eisenberg to influence the price of the MNGO token through swaps, and he also engaged in manipulation of a swap for his part in abusing Mango Markets in October, according to the lawsuit.
After Eisenberg used numerous accounts to buy, sell, and hedge the price of the MNGO token, more than $100 million in cryptocurrency was stolen from the decentralized market.
The Department of Justice brought criminal charges against Eisenberg last month, and he is currently in detention. He acknowledged taking the lion’s share of Mango Markets’ funds but maintained that his trading tactics were legitimate and followed the protocol’s instructions.
Eisenberg is likely to keep breaking the law unless he is restricted and given a prohibition on doing specific things, according to the regulator. The regulator seeks, among other things, to enforce a trading restriction, collect different fines and penalties, and bring Eisenberg into compliance with the law.
On December 27, Eisenberg was detained after the Southern District of New York (SDNY) filed a number of allegations against him.
On January 5, the case moved forward when a judge ordered Eisenberg’s arrest due to worries that he could try to leave before the hearing was over. When Eisenberg’s case is over is currently unknown.
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