Avraham Eisenberg, the purported exploiter of the Mango Markets decentralized finance system, is fighting to keep his share of the cryptocurrency earned through his self-described highly successful trading method.
On February 15, Eisenberg’s legal representatives filed a motion in a New York District Court, opposing a lawsuit filed by Mango seeking $47 million in compensation plus interest beginning at the time of Eisenberg’s October attack, which drained almost $117 million from the protocol. They argued that because he and Mango DAO had previously reached an agreement, he shouldn’t be required to repay any more money.
Following the depletion of its treasury, the Mango DAO approved a governance proposal that stipulated Eisenberg would keep a portion of the stolen assets, valued at $47 million, as a bug reward in exchange for Mango agreeing not to take legal action.
According to the lawyers, Eisenberg transferred the rest of the money to Mango Markets, totaling about $67 million. A few weeks later, qualifying Mango Markets members got compensation from the company’s treasury.
The lawyers added:
“At that point, all involved considered this matter closed and Mr. Eisenberg heard nothing further from Mango Markets.”
Mango claims that the settlement should be nullified because it was made under duress, and that Eisenberg was not engaging in lawful bargaining.
These allegations were refuted by Eisenberg’s legal team, which stated that Mango’s improper three-month delay in filing the lawsuit undermines any asserted irreparable loss. They claim the lawsuit seeks to take advantage of Eisenberg’s detention by United States officials in Puerto Rico in December.
On December 28, 2022, Eisenberg was detained in Puerto Rico on accusations of market manipulation and fraud.
The revelation that Eisenberg had justified his attack on the cryptocurrency exchange as a “smart business move” elicited rather negative reactions from members of the crypto community.
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