Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind $100,000,000 Exploit

Solana-based decentralized crypto exchange (SOL) is suing the bad actors behind the alleged $100 million exploitation of its network last October.

In new court filings in the Southern District of New York, Mango Markets accuses Avraham Eisenberg of initiating a “brazen and malicious” attack on its platform.

The exchange claims Eisenberg manipulated the price of its utility token, Mango (MNGO), and then used “fraud and fraud” to convert approximately $114 million from Mango Markets customers into its own accounts.

Eisenberg, who runs a trading firm and describes himself as a “digital art dealer”, went public weeks after the incident, claiming he was the mastermind behind what he described as a “legal” exploitation of Mango.

Eisenberg reckons he’s involved with a trading team that has a very profitable strategy. The scheme keeps decentralized exchanges bankrupt and users unable to access their funds.

Mango Markets said in a new court filing,

“In the days following his attack, the Defendant planned to protect his ill-gotten gains through unlawful means. He forced the Mango DAO [decentralized autonomous organization] to enter into an unenforceable settlement agreement – ​​under duress – intended to waive depositors’ claims against it and deter them from pursuing a criminal investigation.

Following Mango DAO’s vote on the Defendant’s ultimatum, he returned approximately $67 million of the money he illegally converted. He maintained, and continues to defend, the rest. Since the attack, Defendant has continued to plot to attack Mango Market further, publicly, and has used the converted funds to attack other cryptocurrency protocols as well.”

Mango Markets is seeking damages, incidental and consequential.

Earlier this month, the US Commodity Futures Trading Commission (CFTC) brought charges of market manipulation against Eisenberg. He was also arrested by the Department of Justice (DOJ) in Puerto Rico in late December on charges of fraud and commodity manipulation.

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