SEC says Mango Markets attacker stole $116M, violated securities laws

The US Securities and Exchange Commission (SEC) has indicted Mango Markets attacker Avraham Eisenberg. January 20th Press release.

Regulators have accused Eisenberg of manipulating MNGO cryptocurrency tokens. Starting October 2022, Eisenberg has used multiple accounts to exchange perpetual futures and his MNGO tokens. After boosting the price of MNGO, Eisenberg bought his $116 million in other crypto assets from his Mango, effectively depleting the platform’s funds.

An SEC member added that Eisenberg left Mango Markets “in the red” because the token price fell before it recovered to pre-price manipulation levels.

The SEC says Eisenberg stole $116 million this way. He is specifically charged with violating the anti-fraud and market manipulation sections of the Securities Act.

By obtaining permanent injunctive relief for Eisenberg, securities regulators seek to keep Eisenberg from engaging in certain activities. It also seeks to have Eisenberg’s ill-gotten gains relinquished through exploitation with prejudgment interest and civil penalties. It’s not clear how much Eisenberg will have to pay if convicted.

The SEC also said the MNGO token was offered and sold as a security. Investigations into other securities violations and other parties are ongoing, it added. It is unknown if Mango Markets or its operators are under investigation.

Two other agencies — the Southern District of New York (SDNY) and the Commodity Futures Trading Commission (CFTC) — have previously announced charges against Eisenberg. According to today’s report, the defendant remains in custody.

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