This is the fourth time the case is facing charges or lawsuits related to this altcoin exploiter’s attack on the DeFi protocol.
This altcoin has sued someone it sees as an abuser
Mango Labs, the company behind decentralized finance (DeFi) protocol Mango Markets, has filed its own lawsuit against abuser Avraham Eisenberg. The lawsuit, filed January 25 in the United States District Court for the Southern District of New York, alleges that Einseberg exploited his platform for millions of dollars worth of cryptocurrencies in October 2022.
He wants $47 million in damages plus interest from the moment of the attack. It also asked the court to cancel an agreement between Eisenberg and Mango’s respective DAO and declare it ‘null and unenforceable’.
The deal concerned a governance proposal submitted by Eisenberg, which asked the DAO to allow them to hold the $47 million, on the condition that it does not bring criminal charges for the draining of Mango Markets’ treasury. In the most recent complaint, Mango Labs claimed that Eisenberg ‘did not negotiate legally’, adding:
“Eisenberg compelled Mango DAO to enter into an unenforceable settlement agreement, arguing that it dismissed the depositors’ claims against him and prevented them from launching a criminal investigation.”
He manipulated the data
On October 11, 2022, an attacker manipulated the price prediction data of the native MNGO token, allowing them to withdraw approximately $117 million from Mango Markets’ treasury and obtain under-collateralized loans. Later, Eisenberg revealed himself as an aggressor. He claimed that the exploit was a ‘highly profitable trading strategy’ and ‘legal open market actions using the protocol as designed’.
On December 27, Eisenberg was arrested in Puerto Rico and charged by the Federal Bureau of Investigation (FBI) with one commodity fraud and manipulation for his attack on the platform. The Commodity Futures Trading Commission (CFTC) followed the FBI’s accusations Jan. 9, accusing Eisenberg of market manipulation twice.
On January 20, the Securities and Exchange Commission (SEC) dealt another blow to Eisenberg on charges of violations of the anti-fraud and market manipulation provisions of the US securities laws. The Mango Labs lawsuit alleges that Eisenberg is a “notorious online personality” with a “history of attacking multiple cryptocurrency platforms and manipulating cryptocurrency markets.”
Eisenberg tried to take advantage of other protocols. On November 22, the DeFi protocol used a series of complex shortcuts while trying to leverage Aave. Lawyers hired by Mango Labs did not immediately respond to a request for comment. Mango Markets could not be reached for comment.
