- Avraham Eisenberg, the market manipulator found arrested after swindling $110 million.
- Eisenberg allegedly exploited the price of perpetual contracts for Mango Markets.
The cryptocurrency trader accused of fraud in a $110 million allegation scam at Mango Markets has been detained in Puerto Rico. The scammer behind the exploitation of the decentralized trading platform is also charged with market manipulation and fraud by the prosecutors in New York.
Avraham Eisenberg allegedly manipulated the price of perpetual contracts for Mango Markets’ native token MNGO, according to the Court. His purchase of many contracts raised their price by 1,300% in less than an hour.
Eisenberg’s Mango Markets Exploitation
The complaint discloses that Eisenberg utilized his swaps, which had gained in value, to borrow and subsequently withdraw approximately $110 million in various cryptocurrencies obtained from other investors’ deposits on the exchange.
The complaint conveys:
Due to Eisenberg’s withdrawals, other investors with deposits on Mango Markets lost much, or all, of those deposits.
Later, Eisenberg reportedly consented to pay Mango $67 million back, according to the lawsuit.
According to Eisenberg on Twitter, violators and crypto enthusiasts consider these actions as “a profitable trading approach.” Due to this, industry participants are requesting more regulatory clarity to outlaw the practice, which runs the risk of further undermining investor confidence as the blockchain industry struggles to recover from a sharp market decline.
The US Attorney’s Office in Manhattan also charged Eisenberg with manipulating and defrauding the commodities market. He used to have a court appearance later on Tuesday. As per the court documents, he did not have counsel.