Avraham Eisenberg Faces $47M Lawsuit From Mango Markets for Damages and Interest

Avraham Eisenberg, the exploiter, is being sued by Mango Labs, the company that created the decentralized finance (DeFi) technology Mango Markets. This is the fourth lawsuit that has been filed against the Mango Markets exploiter concerning his assault on the DeFi protocol.

According to the lawsuit filed in the Southern District of New York’s United States District Court, Einseberg used the platform to steal cryptocurrencies valued at millions of dollars in October 2022.

Mango Labs demands interest from the period of the attack and damages totaling $47 million. Additionally, it requested that the court revoke and declare “invalid and unenforceable” a contract that Eisenberg and Mango’s associated DAO entered into.

The agreement came from a governance proposal Eisenberg filed, asking the DAO to permit them to retain $47 million in exchange for Mango Markets agreeing not to file a criminal complaint for the theft of its funds.

Eisenberg “was not engaged in lawful bargaining,” according to Mango Labs, which also claimed that Eisenberg coerced Mango DAO into signing an unenforceable settlement agreement under duress that was meant to release depositors’ claims against him and prevent them from opening a criminal investigation.

By altering the native MNGO token’s price oracle data on October 11, 2022, a hacker was able to steal almost $117 million from Mango Markets’ treasury and enable them to take out loans with insufficient collateral.

Eisenberg admitted that he was the attacker. He took to social media to explain his conduct, stating that the exploit was a very successful trading approach and that using the protocol as intended resulted in legal open market movements.

On December 28, 2022, Eisenberg was arrested in Puerto Rico on suspicion of fraud. Many were shocked by this because Eisenberg had defended his attack on the cryptocurrency exchange as a reasonable business decision. However, he was arrested after authorities accused him of market manipulation and fraud.

Eisenberg was hit with additional charges of breaking anti-fraud and market manipulation rules by the Securities and Exchange Commission (SEC) on January 20.

Eisenberg, according to the Mango Labs lawsuit, “is a notorious online personality” who has a history of attacking various cryptocurrency platforms and tampering with cryptocurrency markets.

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