United States prosecutors on Monday filed criminal charges of commodities fraud and manipulation in opposition to Avraham Eisenberg for allegedly making an attempt to steal $110 million from Mango Markets, a DeFi protocol.
Whereas in a Federal Manhattan court docket on Monday, Avraham admitted to rigging $110 million in traders’ funds from the decentralized change run by Mango DAO.
In a signed deposition, FBI Particular Agent Brandon Racz alleged that Eisenberg, on October 11, manipulated the sale of futures contracts on Mango Markets as a commodity “willfully and knowingly.”
He additionally engaged in a scheme involving the intentional and synthetic manipulation of the value of perpetual futures contracts. Investigators additionally added that he carried out different manipulative and misleading actions that finally led to his unlawful withdrawal of $110 million of customers’ funds.
His actions led to the insolvency of Mango because the DEX struggled to handle the devastating results of his manipulations by negotiations.
Eisenberg had agreed to return $67 million to the DAO neighborhood in one in every of his tweets. Mango DAO initiated plans to make use of the returned funds to settle all customers affected by Avraham Eisenberg’s heist.
Eisenberg’s December arrest and court docket submitting have elicited many celebratory memes from victims within the Mango Markets’ Discord server. His arrest will make him the primary American to face prices for rigging a DeFi platform.
In the meantime, Mango change is but to make official statements relating to his arrest.