Mango Markets Hacker Denied Bail And Charged With 3 Criminal Offenses Of Commodities Fraud

Key Points:

  • Avraham Eisenberg, the Mango Markets cryptocurrency trader and suspected manipulator, waived bail during his initial court appearance on Thursday in U.S. District Court in New York.
  • A further court date was set by a federal judge for February 14.
Avraham Eisenberg, the Mango Markets hacker, declined to post the bond at his initial appearance in U.S. District Court in New York. The trader is currently accused of three criminal offenses: commodities fraud, commodities manipulation, and wire fraud. The trader had previously attempted to insulate himself from legal action through a governance proposal approved by Mango DAO.
Mango Markets Hacker Denied Bail And Charged With 3 Criminal Offenses Of Commodities Fraud

Eisenberg reportedly renounced his right to bond at a hearing in the U.S. District Court for the Southern District of New York on February 2, according to accounts of social media users present at the time. According to reports, federal judge Richard Berman, who will preside over the criminal case, has scheduled a further court hearing for February 14. This suggests that Eisenberg may stay in custody at least until Valentine’s Day.

Mango Markets, a DeFi platform situated in Solana, was attacked on October 11, 2022. The hackers made money by manipulating their collateral on Mango, momentarily inflating the value of their collateral, and then taking out substantial loans from the Mango treasury for over $114 million.

Following discussions with the hackers, the Mango Markets DAO Forum agreed on October 15 to endorse a plan that would let the thieves keep $47 million as a bug bounty while getting back a total of $67 million in stolen tokens and that Mango Markets would not press charges in the matter.

Mango Markets Hacker Denied Bail And Charged With 3 Criminal Offenses Of Commodities Fraud

Avraham Eisenberg officially acknowledged his role in the attack on October 16 while claiming that he engaged in proper open market behavior and employed a highly successful trading method. Eisenberg was also endorsed by Daffy Durairaj, a co-founder of Mango Markets, who said that he was cleared of any wrongdoing.

Eisenberg was detained in Puerto Rico on December 26, 2022, nevertheless, on suspicion of commodities fraud and manipulation, according to a U.S. prosecutor. He was sued by the CFTC in January 2023 on the grounds that he was allegedly manipulating the decentralized trading market. The SEC then brought legal action against Eisenberg for allegedly planning an assault on Mango Markets and stealing over $116 million worth of cryptocurrency from the company.

At the time, Mango Markets promised not to suit Eisenberg, but it has now changed its mind. On January 25, 2023, Mango Labs, the organization behind Mango Markets, formally sued Eisenberg in Manhattan for $47 million in damages and interest.

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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