The Commodity Futures Trading Commission (CFTC) and other regulatory bodies have joined the United States Securities and Exchange Commission (SEC) to file charges against a cryptocurrency user accused of organizing a fraudulent scheme that generates losses. of millions of dollars in Mango Markets. , a DeFi protocol.
SEC: Avraham “Avi” Eisenberg Leveraged on Platform
The second fixed on Jan. 20, that Avraham Eisenberg defrauded Mango Markets of approximately $116 million in cryptocurrency by tampering with the MNGO governance token. Eisenberg is also accused of draining the assets of Mango Markets after making several large purchases of MNGO in order to artificially increase the price of the token to USD Coin USDC tickers by $1.00.
Avraham-27, is also charged with violating the anti-fraud and market manipulation clauses of securities laws by the SEC, with the cooperation of the FBI, CFTC, and the US Attorney’s Office for the Southern District of New York.
According to the banking regulator, it would seek “civil penalties, restitution with pre-judgment interest, a conduct-based injunction and permanent injunctions.”
In October, a significant Mango Markets exploit, allegedly carried out by Eisenberg, resulted in the withdrawal of almost $50 million USDC, $27 million Marinade Staked SOL (mSOL), $24 million in SOL and $15 million in MNGO.
Eisenberg publicly fixed that their activities as part of a “highly profitable business strategy” had been legal. Mango Markets later revealed that it had paid around $67 million.
Authorities in Puerto Rico arrested Eisenberg in 2022
In December, the Puerto Rico police detained Eisenberg. In an FBI complaint, the perpetrator was charged with “intentional and artificial manipulation” of the price of endless futures on the crypto platform “deliberately and knowingly.”
On January 9, the CFTC filed a lawsuit accusing Eisenberg of market manipulation.
A trial judge later ordered Eisenberg jailed until his trial during a detention hearing in January, as this was the only option to guarantee his appearance. Since his arrest in December, the Mango Markets scammer has not commented.
