In October 2022, Avraham Eisenberg, a skilled crypto trader, took advantage of a vulnerability in the decentralized exchange (DEX) on the Solana blockchain called Mango Markets. By manipulating the price of Mango Market’s native token (MNGO), he was able to siphon around $110 million worth of different cryptocurrencies from the platform in a major exploit. Following this incident, Mango Markets bounced back with an updated version, named ‘version 4.’ However, its current functioning is more constricted compared to its earlier form.
Mango Markets functioned under the management of Mango DAO, a decentralized autonomous organization. This entity introduced its own cryptocurrency token, titled MNGO, open for investment and trading by the public. Holders of MNGO possessed the privilege to cast votes on key decisions regarding Mango Markets and Mango DAO’s governance, among other aspects.
Based on Decrypt’s report, Eisenberg was convicted in a US federal court last Thursday for his involvement in manipulating the Mango Markets platform. During a one-week trial in Manhattan, a jury found him guilty on multiple charges, including commodities fraud, manipulation of commodities, and wire fraud. The consequences of these convictions include a potential prison sentence of up to 20 years, with sentencing still pending before Judge Arun Subramanian of the New York District Court.
Mango Markets functions as a decentralized exchange (DEX), managed by a decentralized autonomous organization (DAO), and relies on its native MNGO token. This platform lets users lend, borrow, swap, and even trade cryptocurrencies with leverage. Prosecutors claim that Eisenberg manipulated the price of MNGO in October 2022 by trading vast amounts between controlled accounts. He then utilized the inflated token values as collateral to withdraw approximately $110 million worth of various cryptocurrencies from Mango’s liquidity pools.
After the theft occurred, Eisenberg proposed giving back around $67 million of the taken money, while keeping approximately $43 million for himself and obtaining immunity from legal action. However, this offer was declined by the District Attorney.
The defense contended that Eisenberg’s behaviors adhered to the established regulations of the decentralized protocol. In contrast, the prosecution put forth an argument that Eisenberg intentionally engaged in deceitful conduct by artificially influencing asset prices, misleading others to transfer funds under false pretenses. This claim was supported by his online queries regarding market manipulation statutes of limitation and the essential components of fraud. Additionally, his decision to relocate to Israel following the revelation of his exploit added to the suspicion.
An excerpt from the Decrypt report revealed that Eisenberg was taken into custody in Puerto Rico during December 2022, and he has been held in federal detention, anticipating his trial since then.
Following the court’s decision, Brian Klein, Eisenberg’s lawyer, made this statement according to Bloomberg News.
“Although we’re feeling let down, we remain committed to advocating for our client. We intend to submit several motions following the trial.”
Read More
- Will MCU’s Blade Movie Be Rated-R Following Deadpool & Wolverine’s Rating? Kevin Feige Reveals
- ZRO PREDICTION. ZRO cryptocurrency
- Sakamoto Days Chapter 176 Will Likely Return To The Present; Release Date, Where To Read And More
- From Aaron W. Reed To Vinnie Jones: All The Actors Who Played Juggernaut So Far
- How Responsible Is Matthew Perry’s Assistant For His Death? Here’s What Legal Experts Has To Say
- Millie Bobby Brown’s Nineteen Steps Set To Get Big Screen Adaptation; Know More Here
- USD HKD PREDICTION
- IQ PREDICTION. IQ cryptocurrency
- STRX PREDICTION. STRX cryptocurrency
- Crypto Investment Surge: $1.44 Billion Inflows with BTc, ETH, and SOL Leading the Charge
2024-04-19 13:20