{"id":531891,"date":"2022-12-28T03:59:55","date_gmt":"2022-12-28T00:59:55","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/mango-markets-exploiter-arrested-on-fraud-charges-maybe-it-was-illegal\/"},"modified":"2022-12-28T03:59:55","modified_gmt":"2022-12-28T00:59:55","slug":"mango-markets-exploiter-arrested-on-fraud-charges-maybe-it-was-illegal","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/mango-markets-exploiter-arrested-on-fraud-charges-maybe-it-was-illegal\/","title":{"rendered":"# Mango Markets exploiter arrested on fraud charges \u2014 Maybe it WAS illegal"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2409e16c422\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2409e16c422\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/mango-markets-exploiter-arrested-on-fraud-charges-maybe-it-was-illegal\/#%E2%80%9D_Mango_Markets_exploiter_arrested_on_fraud_charges_%E2%80%94_Maybe_it_WAS_illegal_%E2%80%9C\" >&#8221; Mango Markets exploiter arrested on fraud charges \u2014 Maybe it WAS illegal &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Mango_Markets_exploiter_arrested_on_fraud_charges_%E2%80%94_Maybe_it_WAS_illegal_%E2%80%9C\"><\/span>&#8221; Mango Markets exploiter arrested on fraud charges \u2014 Maybe it WAS illegal &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvZTQ4N2MyNjUtNTJlMS00YWY1LWFlNmQtOTRlYjI1MDEyZGQ0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-71d2d00b>The crypto trader behind the $110 million exploit of decentralized exchange Mango Markets has been arrested in Puerto Rico \u2014 and charged with market manipulation and fraud.<\/p>\n<p>According to a previously sealed <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.591629\/gov.uscourts.nysd.591629.1.0.pdf\">complaint<\/a> filed with the Southern District of New York and made public on Dec. 27, the Federal Bureau of Investigation (FBI) pinned Avraham Eisenberg with one count commodities fraud and one count of commodities manipulation in relation to his exploit of Mango Markets.<\/p>\n<p>Eisenberg\u2019s Oct. 11 exploit of Mango Markets worked by manipulating the value of the platform\u2019s native token, MNGO, artificially inflating its price relative to USD Coin (USDC). <\/p>\n<p>Eisenberg and his team then took out \u201cmassive loans\u201d against its inflated collateral, which drained Mango\u2019s treasury of around $110 million worth of various cryptocurrencies. <\/p>\n<p>A day later on Oct. 12, Mango entered into negotiations with Eisenberg for the return of the funds. <\/p>\n<p>Days later on Oct. 15, Mango Markets <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mangomarkets\/status\/1581351549644591104?s=46&amp;t=9-qA4W2WR_Q9yzdQFILJSA\">confirmed<\/a> that $67 million in various crypto assets had been returned.<\/p>\n<p>Eisenberg then publicly fessed up to exploiting the crypto exchange, stating that he was involved in a team that \u201coperated a highly profitable trading strategy\u201d and said that he believed all his actions were \u201clegal open market actions.\u201d <\/p>\n<p>The FBI in its recent complaint stated the actions by Eisenberg constitute both fraud and market manipulation, as he \u201cwillfully and knowingly\u201d engaged in a scheme involving the \u201cintentional and artificial manipulation\u201d of the price of perpetual futures on Mango Markets.<\/p>\n<p>This ultimately allowed him to drain $110 million worth of cryptocurrencies \u2014 most of which came from the deposits of other Mango Markets investors.<\/p>\n<p>\u201cDue to [Eisenberg\u2019s] withdrawals, other investors with deposits on Mango Markets lost much, or all, of those deposits,\u201d explained FBI special agent Brandon Racz in the Dec. 23 complaint. <\/p>\n<p>Racz said Eisenberg may have known his actions were illegal as well, as the day after the Mango Markets exploit, Eisenberg flew from the United States to Israel. <\/p>\n<p>\u201cBased on the timing of the flight, the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have been an effort to avoid apprehension by law enforcement in the im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te aftermath of the Market Manipulation Scheme,\u201d he said. <\/p>\n<p>Eisenberg was arrested on Dec. 26 in Puerto Rico, according to a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.591629\/gov.uscourts.nysd.591629.3.0.pdf\">filing<\/a> from the United States Attorney Southern District of New York.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How low liquidity led to Mango Markets losing over $116 million <\/em><\/strong><\/p>\n<p>In November, Eisenberg tried his luck again, this time on decentralized finance (DeFi) protocol Aave, taking out a loan of 40 million CRV tokens from Aave and betting on a drop in price through a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of sophisticated short sales.<\/p>\n<p>However, the plan ultimately didn\u2019t succeed as the price actually rose during the attack, resulting in losses due to the significant short position. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/maybe-it-was-illegal-mango-markets-exploiter-arrested-on-fraud-charges\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Mango Markets exploiter arrested on fraud charges \u2014 Maybe it WAS illegal &#8220; The crypto trader behind the $110 million exploit of decentralized exchange Mango Markets has been arrested in Puerto Rico \u2014 and charged with market manipulation and fraud. According to a previously sealed complaint filed with the Southern District of New York&#8230;<\/p>\n","protected":false},"author":1,"featured_media":531892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/e487c265-52e1-4af5-ae6d-94eb25012dd4.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[117,71433,20101,3885,12115,70934],"class_list":["post-531891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-business","tag-court","tag-fbi","tag-new-york","tag-police","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/531891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=531891"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/531891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/531892"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=531891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=531891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=531891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}