Solana-Based Trading Platform Mango Markets Sues Crypto Trader Behind $100,000,000 Exploit CryptoBlog
One based in Solana (GROUND) the decentralized crypto exchange is suing the person behind its network’s alleged $100 million exploit last October.
In a new court deposit in the Southern District of New York, Mango Markets accuses Avraham Eisenberg of initiating a “brazen and malicious” attack on its platform.
The exchange claims that Eisenberg manipulated the price of its utility token, Mango (NGOM), then used “fraud and deception” to convert approximately $114 million from Mango Markets clients into his own accounts.
Eisenberg, who runs a trading company and describes himself as a “digital art dealer,” went public the week after the incident, claiming he was the mastermind behind what he described as a “legal” exploit by Mango.
Eisenberg argued that he was involved in a trading team that had a very profitable strategy. The program rendered the decentralized exchange insolvent and users unable to access their funds.
Said Mango Markets in the new court filing,
“In the days following his attack, the accused conspired to protect his ill-gotten gains by other unlawful means. He forced Mango DAO [decentralized autonomous organization] to enter into an unenforceable settlement agreement – under duress – purporting to nullify the filers’ claims against him and prevent them from pursuing a criminal investigation.
Following the Mango DAO’s vote on the defendant’s ultimatum, he returned approximately $67 million of the money he had illegally converted. He kept, and continues to keep, the rest. Since the attack, the accused has continued to plot to attack Mango Markets more, in public, and has used the converted funds to attack other cryptocurrency protocols as well.
Mango Markets seeks compensatory, incidental and consequential damages.
Earlier this month, the U.S. Commodity Futures Trading Commission (CFTC) deposit market manipulation charges against Eisenberg. He was too stopped by Puerto Rico’s Department of Justice (DOJ) in late December for fraud and manipulation of commodities.
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