Avraham Eisenberg, also known by his pseudonym “Avi”, was arrested in Puerto Rico by the FBI following his price manipulation of the MNGO token on October 12th. At that time, Eisenberg assured that these actions were legal and that they only resulted from the exploitation of open parameters of the Mango Markets protocol.
Mango Markets manipulator caught
It would seem that even decentralized finance (DeFi) may eventually fall under the law. Avraham Eisenbergbetter known by his pseudonym “Avi”, was arrested on December 26 in Puerto Rico by US federal authorities.
—SummersThings (@SummersThings) December 27, 2022
According to the complaint, Eisenberg faces one count relating to commodity fraud as well as a second count relating to commodity manipulation, both of which relate directly to the market manipulation of the MNGO token on October 12. last.
Although we are talking here about decentralized finance and a protocol exploitation, Avraham Eisenberg seemed to expect justice to fall on him. Indeed, according to FBI agent Brandon Racz, quoted in the complaint, Eisenberg reportedly flew from US to Israel the day after the market manipulation.
“Based on the time of the flight, the trip appears to have been an effort to avoid being apprehended by law enforcement immediately following the market manipulation scheme. »
Moreover, the arrest of Avraham Eisenberg also results harm caused to other users of the Mango Markets protocol :
“Due to the withdrawals [d’Eisenberg], other investors who have made deposits in Mango Markets have lost many, if not all, of those deposits. »
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In mid-October, Avraham Eisenberg had publicly revealed his identity and claimed to have simply taken advantage of the parameters of the platform as it had been thought. He then explained that all the operations carried out by himself and his team were legal insofar as they were only the result ” shares on an open market “.
Statement on recent events:
I was involved with a team that operated a highly profitable trading strategy last week.
— Avraham Eisenberg (@avi_eisen) October 15, 2022
“Statement on recent events: I was involved with a team that operated a highly profitable trading strategy last week. »
At that time, Eisenberg had managed to negotiate with the teams of Mango Markets in order to return part of the funds generated, in return for which the protocol abandoned all legal proceedings against him. It would seem, given recent events, that this has not discouraged American justice.
Although the charges leading to his arrest only mention market manipulation on the Mango Markets protocol, Avraham Eisenberg did not limit himself to this attempt.
Indeed, he was also the one who had tried to manipulate the price of CRVthe Curve protocol token, in order to shorts and generate profits on Aave last November. However, the operation did not have the desired effect since the price of CRV had managed to rise, thus liquidating Eisenberg’s position in the process.
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Source: Court document
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