CFTC Files Lawsuit Against Mango Markets Exploiter
On January 09, the US CFTC filed charges of manipulation against Avraham Eisenberg.
These charges came just a few weeks after Eisenberg was arrested by the US Department of Justice.
As per the lawsuit, Eisenberg engaged in "manipulation of a swap" for his role in misusing Mango Markets in October 2022.
On January 09, the US Commodity Futures Trading Commission (CFTC)
Filed charges of manipulation against Avraham Eisenberg, the exploiter of Mango Markets.
These charges came just a few weeks after Eisenberg, aka Mango Avi, was arrested by the US Department of Justice (DOJ) on charges that were remarkably identical.
CFTC Sues Mango Markets Exploiter
As per the lawsuit, Eisenberg engaged in "manipulation of a swap" for his role in misusing Mango Markets in October and reportedly utilized a fraudulent approach to influence the price of the MNGO token through fraudulent swaps.
More than $100 million in cryptocurrency was stolen from the decentralized exchange after a trader utilized multiple accounts to purchase, sell, and hedge the price of the MNGO token.
As per the recent lawsuit, the CFTC's exact words were: “A manipulative and fraudulent scheme to artificially raise the price of swaps offered by Mango Markets.”
Eisenberg’s Trades Under Scanner
Eisenberg asserted that he and his team had developed an incredibly profitable trading method and would eventually return some of the proceeds to Mango.
However, his tweets showed that he believed the acts were legal and within the law. However, he was arrested by the Justice Department around two months later on charges of market manipulation.
Eisenberg was able to boost the value of the native MNGO crypto token relative to the stablecoin USDC by purchasing the small-cap token in bulk. As a result, in October, its price jumped by 1,300%. Eisenberg and his team were able to use the inflated MNGO as collateral for more USDC loans as a result.
The CFTC is facing more scrutiny in the aftermath of FTX's bankruptcy. Prior to the exchange's collapse, the governmental agency and its respective commissioners were on board with FTX's efforts to lobby Congress for measures that would enhance the body's regulatory jurisdiction over the crypto market.
Also read: Nomad Exploit Wallet Address Sends $1.5 Million to Tornado Cash
