US Court to Commence Trial on Exploitation of Mango Agreement for Illegal Profit of $116 Million

US Court to Commence Trial on Exploitation of Mango Agreement for Illegal Profit of $116 Million

US Court to Commence Trial on Exploitation of Mango Agreement for Illegal Profit of $116 Million

According to a report by The Block, the federal court in New York will begin hearing the criminal fraud and manipulation case against Avraham Eisenberg on Tuesday, the 9th. The trial is expected to last two weeks and will examine his alleged actions of defrauding $116 million through the use of the Solana ecosystem decentralized finance platform, Mango Markets.

Although Eisenberg confirmed that he and his team planned an attack on Mango Markets in October 2022, he argues that it was merely a “high-profit trading strategy” that legally exploited the protocol’s design.

The strategy involved Eisenberg manipulating the price of the Mango native token, MNGO, by manipulating the price feed of the oracle. He then used the inflated tokens as collateral to obtain approximately $116 million in cryptocurrency loans, causing the platform to become insolvent. Eisenberg later negotiated with Mango DAO and agreed to return $67 million in funds.

Eisenberg was arrested in December 2022 and has been charged by the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC). In the United States, the crime of telecommunications fraud can carry a maximum prison sentence of 20 years.