A cryptocurrency investor making high profits on an altcoin project has faced lawsuits from regulators. The US Commodity Futures Trading Commission (CFTC) has filed a manipulation charge against Avraham Eisenberg for exploiting Mango Markets. These charges come just weeks after Eisenberg, also known as Mango Avi, was specifically arrested by the United States Department of Justice (DOJ) on similar charges. Here are the details…
DoJ and CFTC sue Mango Markets trader
Just weeks after he was arrested by the US Department of Justice (DOJ) on similar charges, the US Commodity Futures Trading Commission (CFTC) brought manipulation charges against Mango Markets abuser Avraham Eisenberg during the night. According to the lawsuit, Eisenberg engaged in “trade manipulation” for his role in the misuse of Mango Markets in October. It also allegedly used a deceptive method to influence the price of the MNGO token through fraudulent exchanges.
Namely, the lawsuit revealed that Eisenberg violated federal commodity law by using a “manipulative or deceptive device” to manipulate the price of the MNGO token through swaps. As we reported as Kriptokoin.com, this exploit against Mango Markets took place in October. More than $100 million in losses were recorded on the decentralized exchange after the trader used multiple accounts to buy, sell and hedge the MNGO token.
He made a large profit in the altcoin project
Eisenberg later said he was part of a group that was “executing a highly profitable trading strategy” and will return some of the funds to Mango. In later tweets, he said he believed his actions were legal. The Justice Department arrested him about two months later on charges of market manipulation. Like the DOJ, the CFTC pointed to statements Eisenberg made on a Discord server prior to the exploit. He also referred to his public statements, saying he “accepted his plan” in his tweets after the funds were withdrawn.
“Contrary to his so-called belief that his actions were legal, in reality they were blatantly manipulation of spot prices and swaps,” the CFTC said. Eisenberg, who was arrested in Puerto Rico towards the end of 2022, remains in custody pending trial. By buying the small-volume token in bulk, Eisenberg was particularly able to increase the value of the native MNGO crypto token relative to the stablecoin USDC. As a result, its price rose 1,300 percent in October. Eisenberg and his team were then able to use the inflated MNGO as collateral for additional USDC loans.
In the wake of FTX’s bankruptcy, the CFTC is increasingly launching scrutiny against cryptocurrency transactions and platforms. The government agency and related commissioners were joining FTX’s efforts to lobby Congress for a measure that would expand the agency’s regulatory authority over the cryptocurrency market before the stock market shut down.