- The US Securities and Exchange Commission (SEC) announced Friday that it has charged Mango Markets scalper Avraham Eisenberg with market manipulation.
- The agency described the original Mango Markets token as a “security.”
- The SEC said Eisenberg manipulated MNGO and stole $116 million from the decentralized exchange.
- Eisenberg was arrested in Puerto Rico in December. It is mandated by the US Department of Justice and the Commodity Futures Trading Commission (CFTC).
- The investigation into the Mango Markets exploit is still ongoing.
The U.S. Securities and Exchange Commission (SEC) has charged Mango Markets scalper Avraham Eisenberg with market manipulation, the agency announced Friday.
According to the SEC, Eisenberg stole about $116 million from decentralized exchange Solana by manipulating the price of MNGO, the platform’s native token. The agency described MNGO as an “alleged” governance and “security” token.
The SEC alleged that Eisenberg sold a large amount of perpetual futures contracts for MNGO tokens and then purchased them with another account. He then bought a large amount of MNGO, inflating its price and allowing him to borrow and withdraw $116 million worth of various cryptocurrencies, draining the entire Mango Markets treasury.
“[…] Eisenberg engaged in a deceptive and deceptive scheme to artificially inflate the price of the MNGO token, which was bought and sold as collateral for crypto assets, in order to borrow and then withdraw almost all available assets from Mango Markets, which left the platform in default when the price of the security returned to a pre-manipulated level, “ said David Hirsch, Head of the Cyber & Crypto Assets Unit. “As our work shows, the SEC remains committed to rooting out market manipulation, regardless of the type of security involved.”
After the attack, Eisenberg took to Twitter to brag about his “very profitable business strategy.” Despite numerous comments about the potential illegality of his actions, he has denied this several times and has said that he believes his actions were “legal”.
The SEC said Eisenberg carried out his scheme while living in Puerto Rico. He was arrested there in December and charged with criminal and civil misconduct by both the US Department of Justice and the CFTC.
The SEC said it is still investigating the attack on Mango Markets, including other entities and people associated with the event.
on the flip side
- Eisenberg has yet to say a word since his arrest in Puerto Rico in December.
- Eisenberg returned $67 million the day after the event but kept $47 million as a bonus.
- There may be more discoveries as the investigation continues.
Why should you bother
Avraham Eisenberg’s arrest and charges show how regulators notice even seemingly insignificant events in the crypto industry. Anyone considering doing something similar to what Eisenberg did should reconsider.
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Mango Markets scalper arrested in Puerto Rico for market manipulation and fraud