An important person in the world of digital finance, Avraham “Avi” Eisenberg, has been found guilty of a major security breach at Mango Markets that let over $110 million be stolen.
When Eisenberg was arrested in Puerto Rico in December 2022, he was facing charges of commodities fraud, market manipulation, and wire fraud connected to the Mango Markets incident. Eisenberg hacked Mango Markets in October 2022 by putting $5 million worth of USDC stablecoin into the system.
Mango Markets’ Price Manipulation Impact
In court, Eisenberg was found to have changed the price of MNGO, which is Mango Markets’ token. This caused a huge jump of about 1,000% in just one hour. He was able to borrow and take more tokens thanks to this fake inflation, which put the platform in a major negative debt position.
After the exploit was found, Eisenberg defended his actions by saying they were part of a legal and very successful trading strategy that worked with the platform. After that, he gave Markets back $67 million but kept $47 million after a vote on community government.
After just over a week, the trial, which started on April 9, was over. Authorities said Eisenberg’s acts were legal, but his defense said they were not. They called them fraud. During the trial, one of the witnesses was a customer from the UK who said they lost £124,000 and talked about how sites like Markets are not centralized.
During the trial, evidence showed that Eisenberg searched the Internet for words related to market manipulation and FBI surveillance. Because of the abuse, Mango Markets lost about $116 million in the end.
CoinGecko says that the price of MNGO has gone up by 14% in the last 24 hours and is now $0.0289.
