Mango Markets sues Avraham Eisenberg

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Key Takeaways Mango Labs, the company behind decentralized perp exchange Mango Markets, has filed a lawsuit against Avraham Eisenberg. The company is seeking restitution of the $47 million that Eisenberg allegedly misappropriated, plus interest. Eisenberg confessed to the exploit in October on Twitter. Share this article

Applied game theorist Avraham Eisenberg is being sued by Mango Labs for exploiting their protocol in October. He already faces charges from the Department of Justice, the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Retaliation from mango markets

Avraham Eisenberg’s problems keep getting worse.

Mango Labs, the company behind Solana-based decentralized perpetual exchange Mango Markets, yesterday filed a lawsuit against Avraham Eisenberg. He is seeking full restitution of the $47 million that Eisenberg allegedly withdrew from the protocol, plus interest, from the day of the attack.

Mango Markets was operated on October 11. The attacker took a large position in the protocol’s perpetual futures, artificially inflating the price of the illiquid MNGO token from $0.3 to $0.91. They then used their large unrealized profits as collateral to borrow the protocol’s assets and drew more than $114 million from its treasury. The attacker then offered to return $67 million to return users of the protocol whole, on the condition that Mango Markets does not file charges against them.

Shortly after, Eisenberg publicly confessed to orchestrating the attack. “I was involved with a team that put together a very profitable trading strategy last week,” he said on Twitter, saying he just used Mango Markets the way he was. designed and had done nothing illegal.

However, the Justice Department saw things differently, and Eisenberg was arrested in Puerto Rico on December 27. The DOJ charged him with one count of commodity fraud and one count of commodity manipulation. The Commodity Futures Trading Commission and the Securities and Exchange Commission also filed their own charges against Eisenberg.

Eisenberg was recently denied bail by a Puerto Rican court after the judge ruled he was a flight risk due to his close family ties outside the United States.

Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.

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