US authorities have filed criminal charges against Avraham Eisenberg for abusing DeFi platform Mango Markets earlier this year.
Damien Williams, U.S. Attorney for the Southern District of New York, said: December 27th Eisenberg was arrested in Puerto Rico on Monday, filing in court.
William’s submission also ordered the unsealing previous complaints In its complaint, FBI agent Brandon Racz alleges how Eisenberg was involved in a plan to deliberately and artificially manipulate Mango Markets perpetual futures contracts to steal about $110 million on October 11. I explained that I was participating.
Racz’s description of the scheme loosely states that Eisenberg used two accounts to inflate the price of MNGO Perpetuals against the USDC stablecoin. Eisenberg also borrowed, traded, and withdrawn various assets to profit from this scheme.
Eisenberg has been known as the perpetrator of the Mango attack since October 15, when he publicly admitted to carrying out the attack as part of the group. Eisenberg claimed at the time that his actions constituted a legitimate trading strategy.
Around the time of that approval, Eisenberg returned $67 million to Mango’s DAO after entering into negotiations with Mango Markets. The DeFi platform said it would not pursue a criminal investigation, but that promise did not prevent US law enforcement from prosecuting Eisenberg this week.
Today’s filing also notes that Eisenberg traveled from the United States to Israel around October 12th.
Eisenberg has also pursued other questionable schemes, including the launch of his own memecoin and a failed attack on the Aave lending platform.
