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U.S. charges Mango Markets exploiter for ‘swap manipulation’ tactics

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U.S. charges Mango Markets hacker for 'swap manipulation' tactics

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  • The CFTC has filed manipulation charges against Mango Markets exploiter Avraham Eisenberg. 
  • Eisenberg is currently in custody and is facing criminal charges previously filed by the U.S. DoJ. 

The U.S. Commodities and Futures Trading Commission has brought its own charges against Mango Markets exploiter Avraham Eisenberg. Eisenberg carried out a $110 million exploit in October 2022. The exploiter fled to Israel shortly after carrying out the attack and was arrested in Puerto Rico last month. 

CFTC alleges swap manipulation of Mango Markets

The commodities regulator alleged that Avraham Eisenberg violated federal commodities law by using a “manipulative and deceptive scheme” to influence the price of MNGO tokens on Mango Markets, a decentralized exchange on Solana [SOL]. 

According to the court filing by the CFTC, the exploiter engaged in “manipulation of a swap” and exploited the DEX to the tune of $110 million. The filing further read:

“The Commission seeks civil monetary penalties and remedial ancillary relief, including, but not limited to, trading bans, restitution, disgorgement, rescission, pre- and post-judgment interest, and such other relief as the Court may deem necessary and appropriate.”

Eisenberg maintains the legality of his actions

Regardless of the charges against him, Avraham Eisenberg has maintained that his efforts were “legal open market actions”. The manipulator has gone as far as describing the exploit as a “highly profitable trading strategy.” These explanations were provided in a Twitter thread just days after the exploit. 

These tweets have been included in the CFTC’s court filing and are being presented as a confession of the exploit. However, the Commission argued:

“Contrary to his purported belief that his actions were legal, in fact, they constituted blatant manipulation of spot prices and swaps.” 

Some members of the crypto community have perceived the CFTC’s decision to file separate charges in a case pertaining to swaps on a decentralized exchange as an attempt to extend their jurisdiction over the crypto industry. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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