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Mango Markets’ Hacker Finally Arrested in Puerto Rico

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Mango Markets' Hacker Finally Arrested in Puerto Rico

The hacker, Avraham Eisenberg, behind the attack on the decentralized exchange Mango Markets has finally been arrested in Puerto Rico according to a Dec 27 filing from the United States Attorney Southern District of New York.

While the hacker claimed that his attack on the crypto exchange was a legal open market action, he has been charged for market manipulation and fraud.

Recall that the action of the crypto trader led to the loss of $110 million from the decentralized exchange Mango Markets.

In view of Eisenberg’s action, a complaint has initially been filed with the Southern District of New York and was made public on Dec. 27, in which the Federal Bureau of Investigation (FBI) accused Einsenberg with one count commodities fraud and market manipulation. 

hacker

The FBI further explained that Eisenberg’s action represented a deep fraudulent scenario during which he engaged in a scheme involving artificial and intentional manipulation of the price of perpetual futures on Mango Markets.

The agency added that due to Eisenberg’s withdrawal other investors with deposits on Mango Markets subsequently lost all, or most, of those deposits.

Eisenberg’s Attack on Mango Markets

Avraham Eisenberg’s attack on Mango Markets dated back to Oct. 11 when he and his team took out massive loans against its inflated collateral, leading to the drain of $110 million from the decentralized exchange. 

Eisenberg subsequently entered into negotiations with the Mango Markets team on Oct. 12 in a bid to return the stolen fund for compensation, stressing that the Mango Market must use the fund to pay back bad debt.

However, Mango Markets ascertained on Dec. 15 that $67 million in various crypto assets had been returned by the hacker based on their agreement.

Meanwhile, Eisenberg justified that his action and his team were within the confine of the law because they only engaged in a profitable trading strategy through legal open market action.

With the arrest of Eisenberg in Puerto Rico, he will need to provide more convincing premises to justify his claim in front of the Judges.