1. BITBILIHome
  2. Article

Trial date set for alleged crypto trader involved in multi-million dollar Mango Markets scam

• 34 views

TL;DR Breakdown

  • Avraham Eisenberg, alleged crypto user behind Mango Markets hack, to face trial on Dec. 4 in the US for multimillion-dollar theft.
  • Eisenberg pleads not guilty to charges of commodities fraud, manipulation, and wire fraud related to Mango Markets exploit.
  • Separate civil suits filed against Eisenberg by CFTC, SEC, and Mango Markets.

The criminal case against Avraham Eisenberg, the crypto user accused of orchestrating a multimillion-dollar exploit of the decentralized exchange Mango Markets, is set to proceed in the United States. Judge Richard Berman of the U.S. District Court for the Southern District of New York has scheduled Eisenberg’s trial for December 4. The exploit, which occurred in October 2022, resulted in the theft of approximately $116 million worth of governance tokens MNGO, USD Coin, and Marinade Staked SOL (mSOL). Eisenberg has pleaded not guilty to three criminal counts related to commodities fraud, commodity manipulation, and wire fraud.

Allegations and legal proceedings

According to court records filed on June 14, Eisenberg allegedly executed a major exploit on Mango Markets, manipulating futures contracts to artificially inflate the price of swaps by 1,300%. Within just 20 minutes, he reportedly extracted around $110 million worth of cryptocurrency from other depositors on the exchange. Four days after the incident, Eisenberg claimed on Twitter that his actions were part of a “highly profitable trading strategy” and that they were legal open market actions using the protocol as designed.

Eisenberg’s trial is not his only legal battle. He also faces separate civil suits filed by the Commodity Futures Trading Commission (CFTC), Securities and Exchange Commission (SEC), and Mango Markets. In January, Mango Labs LLC, the organization behind Mango Markets, accused Eisenberg of deceitfully acquiring $114 million and pressuring members of the Mango Decentralized Autonomous Organization (DAO) to allow him to return only $67 million of the stolen funds. The civil lawsuit is temporarily paused while the criminal case progresses.

International travel and consequences

Following the alleged scam, Eisenberg traveled internationally, adding complexity to the case. An FBI affidavit revealed that he flew to Israel the day after the incident and later moved to Puerto Rico, where authorities arrested him in December 2022. Since then, he has been held in U.S. custody, waiving his right to bail during a February hearing.

If found guilty, Eisenberg could face severe legal consequences. The wire fraud charge alone carries a potential sentence of up to 20 years of imprisonment. In addition to the criminal charges, he is also facing legal action from the SEC and the CFTC. The trial will be closely watched by the crypto community and legal observers as it could set a precedent for cases involving exploitation and manipulation in the cryptocurrency space.

The rise and fall of Mango Markets

Mango Markets, a decentralized exchange (DEX) on the Solana blockchain, allows users to lend, borrow, swap, and leverage trade cryptocurrencies. Governed by MNGO token holders through a DAO, the platform aims to provide convenient and efficient trading services. However, the security breach in October 2022 resulted in a loss of $110 million for the company.

In response to the hack, Mango DAO offered a reward of $47 million to incentivize the return of stolen tokens worth $67 million, with the promise of immunity from legal action; Eisenberg publicly agreed to the terms.

As the trial date approaches, Eisenberg’s lawyer, John Smith, hopes for a favorable outcome. He believes the evidence against his client is weak and has requested that the case be moved to a different court. The trial will determine the accountability and legal implications surrounding cryptocurrency exploits and manipulations.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Trial date set for alleged crypto trader involved in multi-million dollar Mango Markets scam

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月19日 20:58
Next 2023年6月19日 22:58

Related articles

  • IRS wins battle against Kraken to disclose customer information

    TL;DR Breakdown The Internal Revenue Service (IRS) has obtained a federal court order requiring cryptocurrency exchange Kraken to provide account and transaction information. The purpose of the investigation is to identify any tax liabilities among users who conducted cryptocurrency transactions on the platform between 2016 and 2020.  The judge denied the IRS’s attempt to obtain employment information and source of wealth details from Kraken.  Description The Internal Revenue Service (IRS) has obtained a federal court order requiring cryptocurrency exchange Kraken to provide account and transaction information. The IRS stated that it needed this information to investigate potential tax underreporting by Kraken’s users. The court petition was filed in the Northern District of California in February, shortly after Kraken settled charges … Read more The Internal Revenue Service (IRS) has obtained a federal court order requiring cryptocurrency exchange Kraken to provide account and transaction information. The IRS stated that it needed this information to investigate potential tax underreporting by Kraken’s users. The court petition was filed in the Northern District of California in February, shortly after Kraken settled charges with the…

    Article 2023年7月3日

  • 1 in 3 New York residents own cryptocurrencies – Reports

    TL;DR Breakdown Among the key findings highlighted within the Coinbase report is the fact that a notable 19% of New York’s residents, who took part in the study, currently hold cryptocurrencies.  The report discloses an impressive figure of 692 blockchain organizations and over 800 founders that are currently based in New York state.  Description The fourth edition of a comprehensive report series from Coinbase, a prominent cryptocurrency exchange, has just been released, putting the spotlight on New York as a prime example of cryptocurrency innovation at the state level within the United States. This report delves into the significant strides that New York has made in terms of embracing … Read more The fourth edition of a comprehensive report series from Coinbase, a prominent cryptocurrency exchange, has just been released, putting the spotlight on New York as a prime example of cryptocurrency innovation at the state level within the United States. This report delves into the significant strides that New York has made in terms of embracing and adopting cryptocurrencies, shedding light on pivotal milestones achieved in the state’s journey…

    Article 2023年8月10日

  • Europe wins the inflation pageant, beating U.S.

    Description While many nations rally to celebrate their achievements, Europe finds itself in the limelight for a rather unwelcome reason. Their persistence with inflation stands out, and not in a way that invites applause. In a contest no country wants to win, Europe seems to be taking the lead, standing out starkly against the U.S. The … Read more While many nations rally to celebrate their achievements, Europe finds itself in the limelight for a rather unwelcome reason. Their persistence with inflation stands out, and not in a way that invites applause. In a contest no country wants to win, Europe seems to be taking the lead, standing out starkly against the U.S. The Transatlantic Tug of War Let’s get something straight – Europe’s inflation issue isn’t just some fleeting, minor inconvenience. It’s a stickier, more tenacious problem, making U.S.’s inflationary concerns look like child’s play in comparison. As the U.S. basks in the comfort of declining consumer price inflation, Europe grapples with a significantly more pronounced rate. It’s interesting, and not in a good way, that while the U.S….

    Article 2023年9月5日

  • X (Twitter) gains major advantage because of this

    TL;DR Breakdown Zuckerberg introduced Threads to rival Twitter (X), initially gaining 44 million users. Despite blunders by Musk on X, including visibility tweaks and a rise in ads, X remains dominant. Threads’ pitch of being a peaceful alternative lacked the raw debate and drama that attracts users to X. Description Mark Zuckerberg’s competitive punch seemed to land perfectly with the introduction of Threads. An immediate threat to Twitter, now dubbed “X”, Threads zoomed past with a staggering 44 million daily active users. But, like many adrenaline-pumped stories, the dust settled, revealing Threads’ substantial user drop, dwindling to a mere 8 million. Yet, while Threads’ performance … Read more Mark Zuckerberg’s competitive punch seemed to land perfectly with the introduction of Threads. An immediate threat to Twitter, now dubbed “X”, Threads zoomed past with a staggering 44 million daily active users. But, like many adrenaline-pumped stories, the dust settled, revealing Threads’ substantial user drop, dwindling to a mere 8 million. Yet, while Threads’ performance ebbed, X’s inherent nature has shielded it, highlighting an interesting dynamic of the social media landscape. Why…

    Article 2023年8月20日

  • Russia’s digital ruble set to pilot amid economic challenges

    TL;DR Breakdown Russia is initiating a digital Ruble pilot, despite economic challenges and international isolation from the Ukraine conflict. The Federation Council has passed legislation approving the digital Ruble. Tests may begin next month. The digital Ruble could ease cross-border payments and increase internal transaction transparency. Description As the global economy steers towards digitization, Russia propels its own monetary evolution by piloting the digital Ruble, an innovation maneuvered in the midst of formidable economic obstacles. Overcoming international isolation due to the Ukraine conflict, Russia’s journey into the digital currency realm manifests the nation’s resilience and strategic foresight. The launch of Russia’s digital … Read more As the global economy steers towards digitization, Russia propels its own monetary evolution by piloting the digital Ruble, an innovation maneuvered in the midst of formidable economic obstacles. Overcoming international isolation due to the Ukraine conflict, Russia’s journey into the digital currency realm manifests the nation’s resilience and strategic foresight. The launch of Russia’s digital ruble The blueprint for Russia’s digital currency received a green light from the Federation Council, Russia’s upper house of parliament….

    Article 2023年7月20日
TOP