•Avraham Eisenberg is facing a criminal trial in New York on December 4 for allegedly manipulating the decentralized exchange Mango Markets in a $110 million scam.
•The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have both brought charges against him for fraudulent activities, market manipulation, and violating the Commodity Exchange Act.
•Eisenberg admitted to carrying out the scam on Twitter with a highly profitable trading strategy involving two anonymous accounts funded with $5 million each.
Mango Markets Manipulation: Trader Avraham Eisenberg To Stand Trial in December
Avraham Eisenberg, a trader accused of manipulating the decentralized exchange Mango Markets in a massive multi-million dollar scam, is slated to stand trial on Dec. 4 in New York.
Alleged Scam Details
The scam was carried out on October 11, 2022, with Mango Markets tweeting at the time that a hacker had manipulated the platform’s price oracle, resulting in a loss of approximately $110 million.
Charges Brought Against Eisenberg
The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have both brought charges against him. Eisenberg has been accused by the CFTC of engaging in fraudulent activities, market manipulation, and violating the Commodity Exchange Act. The organization is pursuing financial sanctions, a prohibition on engaging in the buying and selling of virtual asset commodities, and reimbursement of funds.
Alleged Scheme Unfolds
According to the CFTC’s filing, Eisenberg’s scheme sought to artificially inflate the value of his swap contract holdings on Mango Markets. He allegedly intended to borrow the huge amount of digital assets without repaying them.
Statement On Recent Events
On December 27, 2022, the U.S. Department of Justice arrested Eisenberg for his involvement in the Mango Markets scam which he admitted on Twitter and described as “a highly profitable trading strategy.” To carry out this scam it is believed that Eisenberg created two anonymous accounts on Mango Markets just before this hack and funded each one with $5 million dollars worth of USDC.