The alleged exploiter of the Mango Markets decentralized financial protocol, Avraham Eisenberg, intends to keep his share of the cryptocurrencies obtained with his alleged “highly profitable trading strategy.”
On February 15, Eisenberg’s lawyers filed a motion in New York district court opposing a lawsuit by Mango seeking $47 million in damages plus interest from the time of Eisenberg’s attack in October, which netted about $117 million. of the protocol.
The lawyers argued that Eisenberg should not have to return any more funds to the DeFi platform due to a settlement agreement he reached with the Mango DAO, arguing that the “matter was settled.”
Mango’s DAO approved a governance proposal after the emptying of its treasury in which Eisenberg kept a part – USD 47 million – of the stolen funds as a bounty for failures, along with the stipulation that Mango would take no legal action.
“Eisenberg transferred funds totaling approximately $67 million to Mango Markets,” the lawyers wrote, adding:
“Weeks later, eligible Mango Markets members received their refund from the Mango Markets treasury. At that time, this matter was considered closed by all involved and Mr. Eisenberg never heard from Mango Markets again.”
Mango, however, said in its lawsuit that the deal should be voided because it was done “under duress” and claimed that Eisenberg “was not involved in the legal negotiation.”
Eisenberg’s lawyers rejected these claims, saying the “inappropriate three-month delay” for Mango to file its lawsuit “undermines any alleged irreparable harm.” The lawsuit, they say, seeks to “take advantage” of Eisenberg’s arrest in December in Puerto Rico by US authorities.
Eisenberg was indicted by the Federal Bureau of Investigation for fraud and asset tampering.
He also faces a lawsuit from the US Commodity Futures Trading Commission alleging market manipulation and a lawsuit from the Securities and Exchange Commission for violating securities laws. related to the fight against fraud and market manipulation.
Eisenberg has previously stated that his Mango trades were “legal open market actions, using the protocol as designed,” calling his alleged attack a “highly profitable trading strategy.”
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