• Avraham Eisenberg, a Mango Markets exploiter, was recently arrested in Puerto Rico on charges of market manipulation and fraud.
• Eisenberg made away with $110 million worth of crypto after exploiting a loophole on the DeFi trading platform Mango Markets.
• Eisenberg is facing commodities fraud charges in the MNGO case.
Avraham Eisenberg, a crypto investor and Mango Markets exploiter, was recently arrested in Puerto Rico on charges of market manipulation and fraud. The mid-October exploit saw Eisenberg making away with $110 million worth of crypto, eventually causing the platform to become insolvent.
Eisenberg and his team had taken advantage of a loophole on the DeFi trading platform Mango Markets and had „operated a highly profitable trading strategy“. While Eisenberg insists that they only carried out market actions that were legally permitted by the protocol, his arrest on Monday has expectedly drawn reactions from the crypto community, especially regarding the terms of the charges.
It is noteworthy that Eisenberg is facing commodities fraud charges in this MNGO case. This is despite the fact that many crypto traders have been using the platform to trade digital tokens for months. The charges came as a surprise to many, as they were expecting the authorities to charge Eisenberg with securities fraud.
A commodities fraud charge is a serious offense in the United States and is punishable by up to 25 years in prison. This means that if Eisenberg is found guilty of the charges, he could be facing a lengthy jail sentence. It is also important to note that the charges are being filed at a federal level, which could result in a much harsher punishment.
With Eisenberg now facing serious commodities fraud charges, the crypto community is awaiting the final outcome of the case. It remains to be seen if Eisenberg will be found guilty of the charges, and what the implications of such a verdict would have on the crypto market.