Mango Markets exploiter to be detained until trial

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Regulation
Mango Markets exploiter to be detained until trial

US Magistrate Judge ruled to detain the exploiter of DeFi protocol Mango Markets before the trial could be completed.

In a new development in the Mango Markets exploitation saga, the US District Court of Puerto Rico has issued a detention order for the notorious Avraham Eisenberg, claimed to be a Mango Markets exploiter.

Following a detention hearing, judge Bruce McGiverin stated that Eisenberg needed to be detained for several reasons. His release is not subject to any condition that will reasonably guarantee his appearance as required.

In addition, the court also mentioned Eisenberg facing a lengthy prison sentence if convicted, having significant family or other ties outside of the US, and having an unverified background.

A detention order is a type of court order that may be issued during a bail hearing. If a judge issues a detention order, the defendant will be held in custody until the case has concluded or they are released as a result of a bail review.

On Dec. 28, Eisenberg was arrested on fraud charges despite claiming that his attack on the cryptocurrency exchange was a legal open market action. The Mango Markets exploiter was apprehended in Puerto Rico and charged with market manipulation and fraud.

He was allegedly involved in a scheme that involved the deliberate and artificial manipulation of the price of perpetual futures contracts. According to investigators, he also engaged in other manipulative and fraudulent practices that ultimately led to the illegally withdrawing of $110 million of users’ funds.

His actions resulted in Mango’s insolvency as the DEX strived to manage the heavy impacts of his manipulations through negotiations.

Following the trade, Eisenberg entered into negotiations with Mango Markets and settled to return $67 million to the decentralized autonomous organization (DAO) that governs it. Mango DAO intended to return those funds to users impacted by Eisenberg’s attack.

Furthermore, on Oct. 15, Eisenberg posted a social media thread asserting that the Mango Markets exploit was legal. According to him, he was following the protocol exactly as it was designed, and the act was simply a “highly profitable trading strategy.”

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Rony Roy

Rony Roy is an electrical engineer turned tech author in the Cryptocurrency space. He got block-chained in 2012 and fell in love with tech and its use-cases and has been writing his way through innovations in this emerging sector. Over the years, he has worked with multiple Blockchain projects and premier cryptocurrency exchanges both national and international.