The CFTC sued Avraham Eisenberg for Mango Markets abuse.
The regulator claimed that Eisenberg was doing swap manipulation.
CFTC Files Its Own Case
The Commodities Futures Commission has sued Avraham Eisenberg, also known as Mango Avi, for exploiting the decentralized exchange Mango Markets on the Solana blockchain.
The CFTC’s complaint accuses Eisenberg of concocting “a manipulative and deceptive scheme to artificially inflate the swap prices offered by Mango Markets.”
Eisenbeg bought MNGO, a small-volume token, in bulk, increasing its price by 1,300%. Eisenberg and his team were soon able to use MNGO as collateral to buy more USDC. The team claimed that their work was legal.
Eisenberg is currently in custody and faces criminal manipulation charges from the Justice Department. The CFTC also got involved, stating that swap transactions are part of its regulatory mandate.
The regulator came under pressure after FTX’s bankruptcy. Before the stock market collapsed, the agency was working to pass a bill in Congress where it would play a more important role in regulation.