U.S Regulator Alleges Crypto Theft of $116M Against Mango Markets Exploiter

• The SEC has charged Avraham Eisenberg with manipulating the Mango Markets platform by deceiving investors through unlawful sales of the MNGO token, as security.
• Eisenberg is currently in custody in Puerto Rico, awaiting extradition to appear before the Southern District of New York.

Avraham Eisenberg has been charged by the U.S. Securities and Exchange Commission (SEC) with manipulating the price of the MNGO token, the governance token of Mango Markets, a Solana-based decentralized exchange.

The SEC alleges that Eisenberg engaged in a “manipulative and deceptive scheme” to artificially inflate the price of MNGO tokens in order to borrow and then withdraw nearly all available assets from Mango Markets. This left the platform at a deficit when the security price returned to its pre-manipulation level.

The SEC’s complaint also alleges that Eisenberg made false and misleading statements about his trading activities in order to induce Mango Markets to enter into a deal that would have allowed him to keep the stolen assets.

Eisenberg has denied the allegations, but he is facing up to 20 years in prison if convicted.

This is the latest in a series of legal troubles for Mango Markets. In October 2022, the exchange was hacked for over $100 million. The hackers exploited a vulnerability in Mango Markets’ code to withdraw funds from the platform.

Mango Markets has since reimbursed users for the losses, but the hack has damaged the exchange’s reputation. The SEC’s charges against Eisenberg are likely to further erode confidence in Mango Markets.

The charges against Eisenberg also highlight the risks of market manipulation in the cryptocurrency space. Cryptocurrencies are often traded on unregulated exchanges, which makes them vulnerable to manipulation. This case should serve as a warning to investors to be wary of schemes that promise high returns with little risk.