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
Cryptoast launches its 1st collection of NFTs
NFTs associated with a collector paper journal 🔥
Source : Cointelegraph
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our pages Financial situation, Media Transparency and Legal Notice.
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
570 items
