Mango Markets Exploiter Hit With New Lawsuit

Key Points:

• Mango Markets’ exploiter Avraham Eisenberg has been sued by the decentralized finance (DeFi) protocol developer.
• The DeFi protocol wants Eisenberg to return the $47 million he gained following his attack and also intends to nullify the agreement between him and Mango’s DAO.

Mango Markets’ exploiter Avraham Eisenberg has been sued by the decentralized finance (DeFi) protocol developer, Mango Labs, according to a Jan. 25 court filing.

Mango Labs alleged that Eisenberg executed a $114 million malicious attack on the DeFi protocol on Oct. 11, 2022, and bragged about it on Twitter. The firm wrote that:

“[Eisenberg] manipulated the value of the Mango token (MNGO) and, through fraud and deception, converted approximately $114 million from Mango Markets depositors into his own accounts. Defendant bragged about his attack soon after on Twitter, describing his unlawful conduct as a ‘highly profitable trading strategy.’”

The DeFi protocol wants Eisenberg to return the $47 million he gained following his attack and also intends to nullify the agreement between him and Mango’s DAO.

Mango DAO and Eisenberg had entered into an agreement allowing the attacker to keep $47 million from the exploit and protect him against any potential lawsuit. However, the protocol’s developers argued that the deal was “invalid and unenforceable” because it was entered “under duress.”

“[Eisenberg] forced Mango DAO to enter into an unenforceable settlement agreement—under duress—purporting to release depositors’ claims against him and precluding them from pursuing a criminal investigation.”

Eisenberg was labeled as a “notorious online personality” by Mango Labs, who noted that he had a “history of targeting several cryptocurrency platforms and manipulating cryptocurrency prices.”

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission have both filed lawsuits against Eisenberg since the Federal Bureau of Investigation (FBI) arrested him on December 27, 2022, in Puerto Rico (CFTC).

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