Mango Markets swindler arrested for fraud — Perhaps it WAS illegal
Mango Markets’ exploiter had previously called his attack against the crypto exchange “legal open-market actions.” News Ho-hoo-ho! Limited Holiday Trait Eisenberg’s Oct. 11, exploit of Mango Markets involved manipulating the price of Mango Markets’ native token MNGO and artificially inflating it’s value relative to USD Coin. Eisenberg and his team then took out massive loans against the inflated collateral. This drained Mango’s treasury, which was worth around $110 million in various cryptocurrencies. Mango began negotiations with Eisenberg to return the funds one day later, on October 12. On Oct. 15, Eisenberg admitted publicly to exploiting the crypto exchange. He stated that he was part of a team that “operated highly profitable trading strategies” and that he believed that all his actions were legal open market actions. In a recent FBI complaint, Eisenberg admitted to market manipulation and fraud. He “willfully and knowingly” participated in a scheme that involved the “intentional manipulation of the price of perpetual futures on Mango Markets.” This allowed him to take $110 million in cryptocurrencies from other Mango Markets investors. In the Dec. 23 complaint, FBI special agent Brandon Racz stated that “Due [Eisenberg]’s] withdrawals other investors with Mango Markets deposits lost much, if all of those deposits.” Racz suggested Eisenberg may have been aware that his actions were illegal. Eisenberg flew from the United States into Israel the day following the Mango Markets exploit. He stated that the travel was planned to avoid being caught by law enforcement during the Market Manipulation Scheme. According to a US Attorney Southern District New York filing, Eisenberg was arrested Dec. 26 in Puerto Rico.