{"id":538025,"date":"2023-01-10T00:30:00","date_gmt":"2023-01-09T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit\/"},"modified":"2023-01-10T00:30:00","modified_gmt":"2023-01-09T21:30:00","slug":"cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit\/","title":{"rendered":"# CFTC files suit against Avraham Eisenberg for market manipulation in Mango exploit"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 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-6a38447b9a447\" 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-6a38447b9a447\" 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\/cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit\/#%E2%80%9D_CFTC_files_suit_against_Avraham_Eisenberg_for_market_manipulation_in_Mango_exploit_%E2%80%9C\" >&#8221; CFTC files suit against Avraham Eisenberg for market manipulation in Mango exploit &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CFTC_files_suit_against_Avraham_Eisenberg_for_market_manipulation_in_Mango_exploit_%E2%80%9C\"><\/span>&#8221; CFTC files suit against Avraham Eisenberg for market manipulation in Mango exploit &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-6ed77c39>The United States Commodity Futures Trading Commission (CFTC) filed suit against self-described digital artist Avraham Eisenberg on Jan. 9, charging him with two counts of market manipulation in connection with an exploit of decentralized finance platform Mango Markets. Eisenberg was arrested on related charges on Dec. 27 and is currently in custody.<\/p>\n<p>The CFTC <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.592057\/gov.uscourts.nysd.592057.1.0_1.pdf\">claimed<\/a> in its suit that Eisenberg \u201cengaged in a manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets [\u2026] culminating in the mis<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>ropriation of over $100 million from the platform\u201d in October. According to the filing, Eisenberg \u201cpurchased over 400 million MNGO-USDC Swaps on Mango Markets with a position size of approximately $19 million.\u201d <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/3422798b-bcb4-43b1-8693-2e2b042c2043.png\"><figcaption style=\"text-align: center;\">Cast your vote now!<\/figcaption><\/figure>\n<p>Eisenberg then bought \u201clarge quantities\u201d of Mango\u2019s MNGO coin on three exchanges that serve as Mango oracles. This forced up the price of MNGO, and Eisenberg borrowed digital assets worth about $144 million from Mango Markets at the inflated price, after which the MNGO price fell, leaving Mango Markets illiquid. His actions resulted in a \u201cwash\u201d transaction, according to the CFTC. According to the CFTC:<\/p>\n<blockquote><p>\u201cThe goal of Defendant\u2019s scheme was straightforward: to artificially inflate the value of his swap contract holdings on Mango Markets through price manipulation, so that he could \u201cborrow\u201d a significant amount of digital assets that he had no intention to repay.\u201d<\/p><\/blockquote>\n<p>Eisenberg revealed himself as the Mango Markets exploiter in an Oct. 15 tweet, and claimed his actions were legal. This came after Eisenberg had anonymously demanded 70 million USD Coin (USDC), worth $70 million, as a bug bounty. The Mango Markets community voted to let him keep $47 million and not pursue criminal charges against him.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I believe all of our actions were legal open market actions, using the protocol as designed, even if the development team did not fully anticipate all the consequences of setting parameters the way they are.<\/p>\n<p>\u2014 Avraham Eisenberg (@avi_eisen) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/avi_eisen\/status\/1581326199682265088?ref_src=twsrc%5Etfw\">October 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The U.S. Justice Department arrested him on Dec. 27, however, and charged him with one count commodities fraud and one count of commodities manipulation. The CFTC is alleging he violated the Commodities Exchange Act and several commission regulations. <\/p>\n<p><strong><em>Related: Hackers copied Mango Markets attacker\u2019s methods to exploit Lodestar \u2014 CertiK<\/em><\/strong><\/p>\n<p>The CFTC requested a jury trial for him, with a permanent injunction against commodities trading activities, payment of civil penalties, disgorgement and reimbursement of funds received in the exploit and benefits derived from them. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\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\/cftc-files-suit-against-avraham-eisenberg-for-market-manipulation-in-mango-exploit\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; CFTC files suit against Avraham Eisenberg for market manipulation in Mango exploit &#8220; The United States Commodity Futures Trading Commission (CFTC) filed suit against self-described digital artist Avraham Eisenberg on Jan. 9, charging him with two counts of market manipulation in connection with an exploit of decentralized finance platform Mango Markets. Eisenberg was arrested&#8230;<\/p>\n","protected":false},"author":1,"featured_media":538026,"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\/2023-01\/fed6f548-54f9-47ce-b28a-31ce70206969.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74877,70934],"class_list":["post-538025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-decentralized-exchange","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/538025","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=538025"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/538025\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/538026"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=538025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=538025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=538025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}