Mango Labs, the company behind the decentralized finance (DeFi) protocol Mango Markets has filed its own lawsuit against exploiter Avraham Eisenberg.
January 25 presentation in the United States District Court for the Southern District of New York alleges that Einseberg mined its platform for millions of dollars worth of cryptocurrency in October 2022.
It asks for $47 million in damages plus interest from the time of the attack.
He also asked the court to rescind an agreement made between Eisenberg and the Mango-related DAO and declare it “invalid and unenforceable.”
The deal was related to a government proposal filed by Eisenberg that asked the DAO to let them keep $47 million along with the stipulation that Mango Markets not file criminal charges for draining its treasury.
In the latest complaint, Mango Labs alleged that Eisenberg “did not engage in a legal negotiation,” adding:
“[Eisenberg] forced Mango DAO to enter into an unenforceable settlement agreement, under duress, that sought to release depositors’ claims against them and prevented them from conducting a criminal investigation.”
On October 11, 2022, an attacker extracted around $117 million from Mango Markets’ treasury by manipulating price oracle data for its native MNGO token, allowing them to obtain unsecured loans.
Later, Eisenberg was revealed as the attacker. He claimed that the exploit was a “highly profitable business strategy” and that it involved “open market legal actions, using the protocol as designed.”
On December 27, Eisenberg was arrested in Puerto Rico and charged by the Federal Bureau of Investigation (FBI) with one count of commodity fraud and tampering for his attack on the platform.
Related: Mango Market exploiter boasts after pulling Mango Inu ‘shitcoin’ mat
The Commodity Futures Trading Commission (CFTC) followed up on the FBI’s charges on January 9, charging Eisenberg with two counts of market manipulation.
On January 20, the Securities and Exchange Commission (SEC) dealt Eisenberg another blow with charges of violations related to the anti-fraud and market manipulation provisions of US securities laws.
Mango Labs’ lawsuit claimed that Eisenberg “is a notorious online personality” with “a history of attacking multiple cryptocurrency platforms and manipulating cryptocurrency markets.”
Eisenberg has attempted to exploit other protocols, he used a large number of sophisticated shorts on November 22 to attempt to exploit the DeFi Aave protocol.
Lawyers retained by Mango Labs did not immediately respond to a request for comment. Mango Markets could not be reached for comment.
