March 27, 2023

After the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission, Mango Labs is filing a complaint against Avraham Eisenberg. The company is claiming the $47 million retained by “Avi” following its manipulation of the price of the MNGO token last October, in addition to damages.

Mango Markets sues Avi

A new complaint has been filed against Avraham Eisenberg, the manipulator of the Mango Markets platform which had managed to generate $114 million in profit on the MNGO token. This time, it is Mango Labs, the firm behind the protocol itself, which attacks “Avi”.

According to the document filed with the court for the Southern District of New York (Manhattan), Mango Labs demands $47 million kept by Avraham Eisenberg following market manipulation and after returning part of the funds to the protocol, in addition to damages, the amount of which has not been specified.

At the time, Avi publicly confessed to being responsible for the operation, claiming that he had only used the protocol “ as it was designed » and that it was « a highly profitable strategy “. Thanks to the use of 2 accounts simultaneously, Eisenberg had managed to drive up the price of swaps by 1,300% on Mango Markets using perpetual contracts.


MNGO token price with manipulation highlighted

Avraham Eisenberg had proposed to return the majority of the funds in exchange for the dropping of all criminal charges against him via a vote carried out on the governance forum of Mango Markets. However, in the complaint, the protocol said that this agreement had been reached “ under duress » and that he was therefore mechanically « invalid and unenforceable “.

The trader is now under fire for several criminal charges, the latter also being sued by the Commodities Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC) and now by the Mango Markets protocol. Avi had previously been arrested in Puerto Rico, and has since been imprisoned awaiting trial.

According to the latest information available, Avraham Eisenberg still does not have a lawyer to defend his case. If convicted of the charges he faces, Avraham Eisenberg would become the first American citizen to be sentenced for market manipulation in the world of decentralized finance (Challenge).

👉 To read also – Master the challenges of decentralized finance (DeFi) with École Polytechnique Executive Education

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Source : Cointelegraph

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