Mango Markets Cyber Attack Suspect Arrested and Detained in Puerto Rico by US Authorities

An individual has been charged by the U.S. Securities and Exchange Commission (SEC), the Commodities Futures Trading Commission (CFTC), and the Department of Justice (DOJ) for allegedly stealing $116 million from the crypto trading platform Mango Markets. The defendant has been apprehended and is currently being held in custody in Puerto Rico.

Alleged Mango Markets Hacker Arrested and Detained in Puerto Rico by SEC, CFTC, and DOJ

The U.S. Securities and Exchange Commission (SEC) has accused Avraham Eisenberg of committing an attack on Mango Markets, a crypto trading platform, by manipulating the MNGO token. The SEC claims that the token was promoted and sold as a security on Friday.

Avraham Eisenberg, the 27-year-old U.S. citizen who has been charged by the SEC, is also facing charges from the Department of Justice (DOJ) and the Commodities Futures Trading Commission (CFTC) for his alleged actions. The CFTC filed a civil enforcement action against him on January 9th, and he has been arrested and is currently being held in custody at MDC Guaynabo, Puerto Rico.

The securities watchdog explained that beginning on Oct. 11, 2022, while living in Puerto Rico: “Eisenberg engaged in a scheme to steal approximately $116 million worth of crypto assets from the Mango Markets platform.”

According to the SEC, Eisenberg allegedly manipulated the market by utilizing an account under his control on Mango Markets to sell a significant quantity of perpetual futures for MNGO tokens and then using another account on the same platform to buy back those same perpetual futures.

Furthermore, Eisenberg is accused of artificially inflating the price of the thinly traded MNGO token by making several large purchases of it and making it appear more valuable in relation to USD Coin (USDC). As a result, the price of the MNGO perpetual futures on Mango Markets reportedly rose. According to the securities regulator:

Eisenberg used the increased value of his MNGO perpetual futures position to borrow and withdraw approximately $116 million worth of various crypto assets from Mango Markets, effectively draining all available assets from the Mango Markets platform.

The SEC charged Eisenberg with “violating anti-fraud and market manipulation provisions of the securities laws.” The regulator is seeking “permanent injunctive relief, a conduct-based injunction, disgorgement with prejudgment interest, and civil penalties.”

Joy Rice

Joy Rice is a computer science graduate and crypto writer with a strong understanding of blockchain technology. She writes about the latest developments in the crypto industry, and is passionate about educating and informing readers about the potential uses of blockchain.