CFTC accuses Mango Market's exploiter of market manipulation

CFTC accuses Mango Market's exploiter of market manipulation

The Commodities and Futures Trading Commission (CFTC) charged the exploiter of Mango Markets, Avraham Eisenberg, to have violated federal raw material laws during his $ 110 million manipulation in October.

The commission calls for various forms of punishments and relief from the attacker, including trade bans, reimbursement and degorable.

Eisenberg's crime

Pro the complaint The CFTC, which was submitted on Monday "Manipulative" and "deceptive" scheme have embedded the price of swaps on the platform.

During the October use the price of mngo-the native token of the platform-so that it was able to get extensive money from the platform "Listing out", which he did not intend to repay. He did this by initially buying 400 million MNGO USDC swaps on mango markets for around $ 19 million. Due to the relative illiquidity of MNGO, this purchase meant that the price of the token shot from $ 0.54 $ per piece within 30 minutes.

using the oracle of the protocol, which reflects this newly bloated MNGO price, Eisenberg was able to "borrow" the protocol of the entire available liquidity. This included $ 114 million of far liquid and more popular cryptos such as Bitcoin, Ether and Tether. This left Mango Markets and its other users with a smaller position sizes "a largely empty bag in hand".

"Through this behavior, the accused participated in fraudulent and manipulative actions and practices, or is in the process of participating in fraudulent and manipulative actions and practices that violate the Commodity Exchange Act," said the Commission.

admission to the law

While most Defi-hackers make sure to keep their identity secret, Eisenberg spent publicly with his exploit of Mango Markets shortly after his attack. Weeks later he described his exploit as a "profitable business". accusing His critics are "jealous".

"I believe that all of our actions were legal open market campaigns in which the protocol was used as intended, even if the development team did not look for all the consequences of the parameter's cessation as they are," he said at the time.

, however, the CFTC argued in its submission and said that the actions of the exploider "were a blatant manipulation of spot prices and swaps".

Eisenberg was arrested at the end of last year in Puerto Rico from the Ministry of Justice due to similar charges in New York. In a signed statement, the FBI special agent Brandon Racz said that Eisenberg could have secretly knew that his actions were illegal, based on his departure to Israel within 24 hours after using the defi exchange.

Eisenberg and his team were later responsible for the start of a short attack ultimately failed and led to significant losses.

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