July 24, 2024
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Mango Markets sues Avraham Eisenberg for $47M in damages plus interest

The case is the fourth time the Mango Markets exploiter has been charged or sued in connection with his attack on the DeFi protocol.

Mango Labs, the business behind the Mango Markets decentralized finance (DeFi) platform, has filed its own lawsuit against exploiter Avraham Eisenberg.

The lawsuit, filed on January 25 in the United States District Court for the Southern District of New York, accuses Einseberg of stealing millions of dollars in cryptocurrencies in October 2022.

It seeks $47 million in damages plus interest from the date of the incident.

It also sought the court to deem an agreement between Eisenberg and Mango’s linked DAO “invalid and unenforceable.”

The agreement was in response to Eisenberg’s governance proposal, which asked the DAO to allow them to keep $47 million in exchange for a promise that Mango Markets would not pursue criminal charges for draining its treasury.

Mango Labs said in its most recent complaint that Eisenberg “was not engaged in authorised negotiation,” adding:

“[Eisenberg] forced Mango DAO to enter into an unenforceable settlement agreement—under duress—purporting to release depositors’ claims against him and precluding them from pursuing a criminal investigation.”

An attacker drained roughly $117 million from Mango Markets’ treasury on Oct. 11, 2022, by manipulating the price oracle data of its native MNGO token, allowing them to take out under-collateralized loans.

Following that, Eisenberg identified himself as the attacker. He said the exploit was a “very profitable trading strategy” and that it was “legitimate open market actions, carried out in accordance with the protocol as established.”

Eisenberg was arrested in Puerto Rico on December 27 and charged with commodities fraud and manipulation by the Federal Bureau of Investigation (FBI) for his attack on the platform.

On Jan. 9, the Commodity Futures Trading Commission (CFTC) charged Eisenberg with two counts of market manipulation in response to the FBI’s claims.

On January 20, the Securities and Exchange Commission (SEC) hit Eisenberg with charges of violating anti-fraud and market manipulation sections of US securities laws.

Eisenberg, according to the Mango Labs complaint, is a “notorious internet personality” with a “history of targeting several cryptocurrency platforms and manipulating cryptocurrency markets.”

Eisenberg has attempted to target additional protocols; on November 22, he utilised a plethora of complex tricks to try to exploit the DeFi protocol Aave.

Mango Labs’ contracted attorneys did not immediately reply to a request for comment. Mango Markets did not respond to requests for comment.