Mango Markets Sues Avraham Eisenberg For $47M in Damages Plus Interest

The Mango Markets exploiter has been sued four times for his attack on the DeFi protocol.
Mango Markets, the company behind the Defi protocol, has filed a lawsuit against Avraham Eisenberg.

The Jan. 25 filing in the United States District Court for the Southern District of New York alleges Einseberg of exploiting its platform for a huge number of dollars worth of cryptocurrencies in October 2022.

It asks for $47 million in damages plus interest starting from the hour of the attack.

It also asked the court to rescind an agreement made among Eisenberg and Mango’s related DAO and pronounce it to be “invalid and unenforceable.”
The agreement was in relation to a governance proposal submitted by Eisenberg which asked the DAO to allow them to keep $47 million alongside a stipulation that Mango Markets wouldn’t seek after criminal charges for the depleting of its treasury.

In the latest complaint, Mango Labs alleged Eisenberg “was not taken part in legal bartering,” adding:

“[Eisenberg] forced Mango DAO to go into an unenforceable settlement agreement — under coercion — indicating to release depositors’ cases against him and blocking them from seeking after a criminal investigation.”

On Oct. 11, 2022, an attacker emptied around $117 million out of Mango Markets’ treasury by manipulating the price prophet data of its native MNGO token, allowing them to take out under-Collateralized loans.

Subsequently, Eisenberg exposed himself as the attacker.He claimed that the exploit was a highly profitable trading strategy and that it was legal open market activities.

On Dec. 27, Eisenberg was arrested in Puerto Rico and charged by the Federal Bureau of Investigation (FBI) with one count every one of commodities fraud and manipulation for his attack on the platform.

The FBI’s charges were followed up by the Commodity Futures Trading Commission.
There are two counts of market manipulation.

On Jan. 20 the Securities and Exchange Commission (SEC) managed a further disaster for Eisenberg with charges of violations relating to hostile to fraud and market manipulation arrangements of U.S. Securities Regulations.

Mango Labs suit Claimed Eisenberg “is a notorious web-based personality” with “a history of attacking multiple Cryptocurrency platforms and manipulating Cryptocurrency markets.”

Eisenberg has attempted to exploit different protocols, he used a large number of sophisticated shorts on Nov.22 people are trying to exploit the DeFi protocol.

Attorneys retained by Mango Labs didn’t immediately answer a solicitation for comment.No one could be reached for comment at Mango Markets.