Crypto Exchange Mango Markets Sues Exploiter for $47M in Damages

The platform wants its money back from trader Avraham Eisenberg after losing $114 million in October.

AccessTimeIconJan 26, 2023 at 10:26 a.m. UTC
Updated Jan 26, 2023 at 9:11 p.m. UTC
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Decentralized crypto exchange Mango Markets has sued Avraham Eisenberg, a trader who drained funds from Mango in October, for $47 million in damages, according to a filing with the U.S. District Court for the Southern District of New York on Wednesday.

Eisenberg had "through fraud and deception" taken about $114 million from Mango Markets. He later returned $67 million but "retained" the rest, the filing said. Mango Markets now wants the remaining $47 million back in damages.

Charges have been piling up for Eisenberg. Last week, the U.S. Securities and Exchange Commission charged Eisenberg for draining the money from Mango Markets. Prior to that, the U.S. Commodity Futures Trading Commission charged him for that exploit, saying that he had 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." Before that he faced similar charges from the Justice Department.

Following the exploit in October, Eisenberg defended his actions by labeling the attack as a "highly profitable trading strategy."


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

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