{"id":580288,"date":"2022-12-28T13:15:12","date_gmt":"2022-12-28T13:15:12","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=580288"},"modified":"2022-12-28T13:15:24","modified_gmt":"2022-12-28T13:15:24","slug":"mango-markets-avraham-eisenberg-arrested","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/mango-markets-avraham-eisenberg-arrested\/","title":{"rendered":"Mango Markets Hacker Avraham Eisenberg Arrested For $110 Million Market Manipulation"},"content":{"rendered":"\n<p>Summary:<\/p>\n\n\n\n<ul><li>The Department of Justice charged Eisenberg with market manipulation of the MNGO token.<\/li><li>Eisenberg exploited Mango Markets for $110 million in cryptocurrencies back in October 2022.<\/li><li>The Solana-based decentralized exchange offered Eisenberg and the other hackers $47 million as a bug bounty if the group returned $67 million in digital assets.<\/li><\/ul>\n\n\n\n<p>Avraham Eisenberg was arrested on Tuesday after the U.S. Department of Justice charged Eisenberg with market manipulation over an October hack on the decentralized exchange Mango Markets. The platform allows users on Solana to buy, sell, lend and trade cryptocurrencies on Solana\u2019s blockchain network.&nbsp;<\/p>\n\n\n\n<p>A decentralized autonomous organization (DAO) comprised of MNGO token holders govern the exchange.&nbsp;<\/p>\n\n\n\n<h2>The Charges<\/h2>\n\n\n\n<p>Indeed, the DOJ charged and arrested Eisenberg for \u201cmarket manipulation offenses\u201d, per an official statement from U.S. prosecutors on Tuesday. Eisenberg also stands accused of commodities fraud and commodities manipulation, as revealed by a second filing.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Eisenberg engaged in a scheme involving the intentional and artificial manipulation of the price of perpetual futures contracts on a cryptocurrency exchange called Mango Markets.<\/p><\/blockquote>\n\n\n\n<h2>Mango Markets $110 Million Hack<\/h2>\n\n\n\n<p>Mango Markets was exploited for around $110 million in cryptocurrencies on October 11, 2022. The hacker leveraged a loophole in Mango\u2019s price oracle to trigger massive withdrawals from the DEX.&nbsp;<\/p>\n\n\n\n<p>On October 15, 2022, Eisenberg said he \u201cwas involved with a team that operated a highly profitable trading strategy\u201d on Mango. The DOJ\u2019s indictment said Eisenberg and his team generated illicit wealth by trading MNGO perpetual tokens between several counts.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Statement on recent events:<br><br>I was involved with a team that operated a highly profitable trading strategy last week.<\/p>&mdash; Avraham Eisenberg (@avi_eisen) <a href=\"https:\/\/twitter.com\/avi_eisen\/status\/1581326197241180160?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">October 15, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>According to the court filing, the hacker group then manipulated Mango\u2019s token price and created an artificial asset price pump by purchasing MNGO in vast amounts. Eisenberg allegedly leveraged the assets as collateral to borrow a myriad of digital currencies.&nbsp;<\/p>\n\n\n\n<p>Afterward, Eisenberg drained liquidity from the DEX and withdrew $110 million in several cryptos. The trader claimed the process aligned with \u201clegal open market actions\u201d and the exploit was the consequence of Mango Markets\u2019 lack of anticipation.&nbsp;<\/p>\n\n\n\n<p>Mango offered Eisenberg and his team $47 million as a bug bounty. In exchange, the platform asked the hackers to return $67 million in tokens.&nbsp;<\/p>\n\n\n\n<p>Tuesday\u2019s <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.591629\/gov.uscourts.nysd.591629.3.0.pdf\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.591629\/gov.uscourts.nysd.591629.3.0.pdf\" rel=\"noreferrer noopener nofollow\">arrest<\/a> was the latest crackdown on crypto hacks by the DOJ. Federal prosecutors also announced investigations into roughly $400 million <a href=\"https:\/\/en.ethereumworldnews.com\/u-s-doj-launches-probe-into-372-million-ftx-hack-following-bankruptcy-filing\/\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/u-s-doj-launches-probe-into-372-million-ftx-hack-following-bankruptcy-filing\/\" target=\"_blank\" rel=\"noreferrer noopener\">stolen<\/a> from bankruptcy crypto exchange FTX.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Unfortunately, the exchange this took place on, Mango Markets, became insolvent as a result, with the insurance fund being insufficient to cover all liquidations. This led to other users being unable to access their funds.<\/p>&mdash; Avraham Eisenberg (@avi_eisen) <a href=\"https:\/\/twitter.com\/avi_eisen\/status\/1581326202731913216?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">October 15, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Avraham Eisenberg was arrested for stealing $110 million from Solana DEX Mango Markets in October. <\/p>\n","protected":false},"author":55,"featured_media":580292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,26],"tags":[108744,108360],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/580288"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=580288"}],"version-history":[{"count":2,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/580288\/revisions"}],"predecessor-version":[{"id":580293,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/580288\/revisions\/580293"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/580292"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=580288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=580288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=580288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}