Lawyers representing a cryptocurrency user allegedly behind a $116 million exploit of decentralized exchange Mango Markets have consented to arrest in the criminal case for commodity fraud, commodity market manipulation and wire fraud.
According to accounts of users of social networks present On February 2, the legal team of Mango Markets user Avraham Eisenberg waived his right to bail at a hearing in the US District Court for the Southern District of New York. Federal Judge Richard Betman, who will preside over the criminal case, has reportedly set a new appointment for February 14, suggesting that Eisenberg could be detained until at least Valentine’s Day.
Eisenberg was allegedly behind a major Mango Markets exploit in October 2022, withdrawing approximately $50 million in USD Coin (USDC), $27 million in Marinade Staked SOL (mSOL), $24 million in SOL, and $15 million in MNGO , approximately USD 116 million. The platform reported that some $67 million worth of funds had been returned after the attack.
The cryptocurrency user has publicly said that he believed his actions had been legal. as part of a “highly profitable business strategy”. US authorities apparently disagreed, with the Securities and Exchange Commission, Commodity Futures Trading Commission and others announcing parallel charges in December and January related to fraud and market manipulation.
Authorities detained Eisenberg in Puerto Rico in December based on a criminal complaint. An indictment filed on Jan. 9 alleged that he had “engaged in a scheme to fraudulently obtain approximately $110 million worth of cryptocurrency from the Mango Markets cryptocurrency exchange and its clients and accomplished this objective by artificially manipulating the price of certain perpetual futures contracts.”
February 2 was Eisenberg’s first appearance in court for the Southern District of New York after his transfer from Puerto Rico via Oklahoma. He has remained silent on social media following his arrest.
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