The US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and the Department of Justice (DOJ) have apprehended an accused perpetrator responsible for stealing $116 Million from a crypto trading platform Mango Markets. The defendant is currently under arrest and is being detained in Puerto Rico.
Mango Markets Attacker Arrested and Held in Custody
The US Securities and Exchange Commission (SEC) declared on Friday that they have charged Avraham Eisenberg with “orchestrating an attack on a crypto-asset trading platform, Mango Markets, through manipulating the MNGO token.” The regulator established that the crypto token was provided and sold as a security.
The defendant is a 27-year-old US citizen who is confronting the accusations. He is facing “parallel criminal and civil charges” filed by the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) respectively. The CFTC lodged a civil enforcement case against Eisenberg on January 9. He was apprehended in Guaynabo, Puerto Rico.
The securities regulator stated that from October 11, 2022, while living in Puerto Rico:
Eisenberg implemented a plan to steal $116 million in crypto assets from Mango Markets platform.
It is reported that he “used an account he controlled at Mango Markets to sell a large number of perpetual futures for MNGO tokens and used a separate account at Mango Markets to purchase those same perpetual futures,” the regulator stated.
Moreover, Eisenberg allegedly carried out a series of large-scale purchases of MNGO tokens which were not publicly traded to artificially lift their rate relative to USDC, said the SEC, adding that MNGO perpetual futures prices on Mango Markets were then increased. According to the securities regulator
Eisenberg exploited the MNGO perpetual futures value to borrow approximately $116 million in crypto assets and then repaid it, effectively taking all of the assets from the Mango Markets platform.
The SEC is accusing Eisenberg of “violating the anti-fraud and market manipulation provisions of the securities laws.” The regulator is seeking “permanent injunctive relief, a conduct-based injunction, restitution with pre-judgment interest, and civil penalties.”
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