Avraham Eisenberg, responsible for the Mango Markets attack, claimed that his action was legal.
Eisenberg confirmed that he orchestrated the $114 million attack.
Mango Markets Attacker Defends Himself
Avraham Eisenberg, the perpetrator of the attack, said:
“Last week I was with a team that was running a very profitable trading strategy. I believe all our actions are legitimate market actions, using the protocol as designed, even if the development team didn’t do it exactly. This is a result of setting the parameters as they are”
Eisenberg’s legal trading strategy required him to use $10 million to drain $114 million from Mango Markets. This “trade” made worked like a manipulator to inflate the price of the Mango token from $0.30 to $0.91. This increased the value of Eisenberg’s collateral and allowed his team to borrow more funds from the protocol.
Eisenberg’s name was associated with the attack a day later. Correspondent Chris Burnet published an article presenting evidence linking Eisenberg to the attack. The evidence Burnet revealed included various Discord conversations and on-chain activities.
Eisenberg has previously been accused of defrauding FortressDAO investors.
The attack put Mango Markets in danger of liquidation of user positions due to the protocol’s failure to issue refunds. Eisenberg said that this issue was also discussed in the negotiation with the DeFi protocol.
The Mango community voted to have Eisengberg return $67 million, while retaining $47 million. This reward amount is the highest ever seen in the cryptocurrency industry. In return, the protocol will not resort to legal means.
According to on-chain data, Eisenberg has repaid $8 million in tokens so far. According to him, the deal is not unusual.
