Puerto Rico arrest of Mango Markets attacker

The U.S. Department of Justice арестовало in Puerto Rico Abraham Eisenberg for involvement in an attack on the DeFi platform Mango Markets. He was charged with commodity fraud and price manipulation.

According to показаниям of FBI agent Brandon Rauch, the defendant led a team that in October carried out the Mango exploit worth $116 million.

Earlier Eisenberg admitted involvement in the attack on the platform. He said that there was nothing illegal about his group’s actions. U.S. authorities disagreed.

“Eisenberg participated in a scheme involving deliberate and artificial manipulation of the price of perpetual futures contracts on a cryptocurrency exchange named Mango Markets,” according to FBI agent.

According to him, the defendant bought a large position in MNGO tokens, causing the asset’s price to rise by 1,300% in under an hour. This allowed Eisenberg to borrow and withdraw funds from the protocol in other coins. As a result of the attack, the platform became insolvent.

The Mango Markets community previously voted for a deal with the exploit’s perpetrators. Under the agreement, they returned $69 million, leaving $47 million as a reward.

The project team planned to use the funds and treasury to compensate affected users.

Earlier, Eisenberg earned around $100,000 more by releasing the Mango Inu meme token.

Follow ForkLog’s bitcoin news in our Telegram — cryptocurrency news, prices and analytics.