• A man named Avraham Eisenberg was arrested for attempting to steal around $110 million from the decentralized cryptocurrency exchange Mango Markets.
• He allegedly manipulated the Mango native token MNGO to artificially inflate the price of the token, enabling him to borrow and withdraw $110 million worth of different cryptos.
• Following talks with Eisenberg, a settlement was reached to recoup $67 million of the stolen funds.
The US authorities have recently cracked down on a major cryptocurrency fraud involving Mango Markets and Avraham Eisenberg. According to a complaint signed by an FBI agent and made public in a Manhattan federal court, Eisenberg is alleged to have attempted to steal around $110 million by manipulating Mango’s native token MNGO.
Eisenberg is accused of committing commodities fraud and manipulation related to Mango Markets, a decentralized cryptocurrency exchange. He allegedly used two accounts to buy and sell futures based on the relative values of MNGO and USD Coin (USDC), acting on both sides of the trade to artificially inflate MNGO’s price. This enabled him to borrow and then withdraw $110 million worth of different cryptos.
The exchange soon initiated talks with Eisenberg, which eventually led to a settlement to recoup $67 million of the stolen funds. According to the December 23 complaint, “members of the Mango DAO voted to approve the October 13, 2022 proposal described above. Following that approval, multiple cryptocurrency wallets sent the Mango DAO approximately $57 million worth of cryptocurrency, in addition to the 10 million USDC that Mango DAO had already received.” Unfortunately, members of Mango DAO and Mango Markets have still not received the remaining $40 million worth of stolen cryptos.
Eisenberg was arrested on December 26 in Puerto Rico, as U.S. Attorney Damian Williams stated in a court filing. It is unclear whether Eisenberg will face any further charges or what his punishment may be. However, the incident serves as a reminder of the risks associated with investing in cryptocurrencies and the importance of taking proper precautions.