Several Charges Levied on Mango Markets Hacker by SEC

  • The charges stem from his alleged actions on the Mango Market in October 2022.
  • Eisenberg will be extradited to New York to face the many allegations against him.

Mango Markets hacker Avraham Eisenberg, who had previously claimed responsibility for the scheme, was charged with fraud and market manipulation by the United States Securities and Exchange Commission (SEC) on Monday. The charges stem from his alleged actions on the Solana-based decentralized exchange (DEX) in October 2022.

U.S. citizen and alleged criminal and civil wrongdoer Eisenberg was detained in Puerto Rico in December and will be extradited to New York to face the many allegations against him. He is suspected of stealing almost $116 million worth of cryptocurrencies by manipulating the platform’s markets.

SEC’s Focus on Crypto Sector

On Twitter in October of the previous year. He boasted about the first attack and referred to it as a very profitable trading strategy. According to him, he and a number of other users successfully carried out a strategy. That caused Mango Markets to experience a temporary halt in its operations. In addition, he defended the strategy when being interviewed about it on the Unchained Podcast.

In December, the U.S. Department of Justice filed charges against Eisenberg; the CFTC followed suit early this month. Many sections of the federal securities laws, including several anti-fraud and anti-market manipulation provisions, are cited in the SEC’s complaint as having been broken by Eisenberg.

Particularly problematic is the SEC’s labelling of the exchange’s MNGO governance token as a security. A claim many crypto supporters would likely reject. Under current Chair Gary Gensler, who has stated his belief that almost all crypto assets qualify as securities, the SEC has increased its focus on the crypto sector.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.