- Mango Markets sues for $47M in damages against alleged crypto fraudster.
- Eisenberg is accused of fraudulently taking and converting $114M from Mango Markets.
- Eisenberg previously faced charges from multiple US regulatory bodies.
Mango Markets, a decentralized crypto exchange, has filed a lawsuit in the United States District Court for the Southern District of New York against Avraham Eisenberg, a decentralized finance trader, seeking $47 million in damages. According to the filing, Eisenberg fraudulently took and converted approximately $114 million from Mango Markets through "fraud and deception."
He later returned $67 million, but retained the remainder. The lawsuit also claims that Eisenberg violated federal commodities law by using a "manipulative or deceptive device" to affect the price of the MNGO token through swaps, and that he engaged in "manipulation of a swap."
This is not the first time Eisenberg has faced legal action for his actions. Last week, the U.S. Securities and Exchange Commission charged him with draining money from Mango Markets. Prior to that, the U.S. Commodity Futures Trading Commission charged him for exploiting the platform and violating federal commodities law. The Department of Justice has also filed similar charges against him in the past.
Following the exploit in October, Eisenberg defended his actions by labeling the attack as a "highly profitable trading strategy." However, Mango Markets is now seeking to recover the remaining $47 million in damages and hold Eisenberg accountable for his actions. The outcome of the lawsuit remains to be seen, but it serves as a reminder of the importance of proper oversight and regulations in the decentralized finance space to protect investors and market participants from fraud and deception.