Mango Markets Exploiter Seeks to Keep Disputed Funds Paid as ‘bug bounty’

Avraham Eisenberg’s legal team stated that because his disagreement with Mango DAO had previously been resolved, he shouldn’t be required to repay any additional money.

Avraham Eisenberg, the alleged Mango Markets exploiter, wants to keep his half of the cryptocurrency earned through his purportedly “very profitable trading approach.”

On February 15, Eisenberg’s attorneys filed a motion in a New York District Court objecting to a lawsuit by Mango that seeks $47 million in damages plus interest beginning at the time of Eisenberg’s October attack, which emptied around $117 million from the protocol.

Due to a settlement agreement Eisenberg signed with Mango DAO, the attorneys claimed that Eisenberg shouldn’t be required to repay any additional money to the DeFi platform and that the “issue was settled.”Following the depletion of its treasury, the Mango DAO approved a governance proposal that allowed Eisenberg to retain a portion ($47 million) of the stolen cash as a bug reward in exchange for Mango agreeing not to file a lawsuit.

“Eisenberg transferred funds totaling approximately $67 million to Mango Markets,” the attorneys wrote, adding:

“Weeks later, eligible Mango Markets’ members received reimbursement from the Mango Markets treasury. At that point, all involved considered this matter closed and Mr. Eisenberg heard nothing further from Mango Markets.”

Mango, though, claimed in its lawsuit that the agreement should be thrown out because Eisenberg “was not engaged in lawful negotiating” and that it was reached “under duress.”

The “improper three-month delay” for Mango to file its lawsuit, according to Eisenberg’s counsel, “undermines any asserted irreparable loss.” They assert that the case aims to “take advantage” of Eisenberg’s detention by American officials in Puerto Rico in December.