{"id":169346,"date":"2023-01-09T23:26:04","date_gmt":"2023-01-09T23:26:04","guid":{"rendered":"https:\/\/precoinnews.com\/?p=169346"},"modified":"2023-01-09T23:26:04","modified_gmt":"2023-01-09T23:26:04","slug":"cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit\/","title":{"rendered":"CFTC files suit against Avraham Eisenberg for market manipulation in Mango exploit"},"content":{"rendered":"<p>The United States Commodity Futures Trading Commission (CFTC) filed suit against self-described digital artist Avraham Eisenberg on Jan. 9, charging him with two counts of market manipulation in connection with an exploit of decentralized finance platform Mango Markets. Eisenberg was arrested on related charges on Dec. 27 and is currently in custody.<\/p>\n<p>The CFTC claimed in its suit that Eisenberg \u201cengaged in a manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets [\u2026] culminating in the misappropriation of over $100 million from the platform\u201d in October. According to the filing, Eisenberg \u201cpurchased over 400 million MNGO-USDC Swaps on Mango Markets with a position size of approximately $19 million.\u201d <\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/3422798b-bcb4-43b1-8693-2e2b042c2043.png\"><\/p>\n<p>Eisenberg then bought \u201clarge quantities\u201d of Mango\u2019s MNGO coin on three exchanges that serve as Mango oracles. This forced up the price of MNGO, with Eisenberg borrowing digital assets worth about $144 million from Mango Markets at the inflated price. After that the MNGO price fell, leaving Mango Markets illiquid. His actions resulted in a \u201cwash\u201d transaction, according to the CFTC, which wrote:<\/p>\n<blockquote><p>\u201cThe goal of Defendant\u2019s scheme was straightforward: to artificially inflate the value of his swap contract holdings on Mango Markets through price manipulation, so that he could \u2018borrow\u2019 a significant amount of digital assets that he had no intention to repay.\u201d<\/p><\/blockquote>\n<p>Eisenberg revealed himself as the Mango Markets exploiter in an Oct. 15 tweet, and claimed his actions were legal. This came after Eisenberg had anonymously demanded 70 million USD Coin (USDC), worth $70 million, as a bug bounty. The Mango Markets community voted to let him keep $47 million and not pursue criminal charges against him.<\/p>\n<p>The U.S. Justice Department arrested Eisenberg on Dec. 27, however, and charged him with one count of commodities fraud and one count of commodities manipulation. The CFTC is alleging he violated the Commodities Exchange Act and several commission regulations. <\/p>\n<p><strong><em>Related: Hackers copied Mango Markets attacker\u2019s methods to exploit Lodestar \u2014 CertiK<\/em><\/strong><\/p>\n<p>The CFTC requested a jury trial for him, with a permanent injunction against commodities trading activities, payment of civil penalties, disgorgement and reimbursement of funds received in the exploit and benefits derived from them. <\/p>\n<p>Source: <a href=\"https:\/\/cointelegraph.com\/news\/cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States Commodity Futures Trading Commission<\/p>\n","protected":false},"author":3,"featured_media":169345,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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