A Solana-based decentralized crypto exchange (SOL) is suing the bad actor behind the alleged $100 million exploitation of its network last October.
In a new court filing in the Southern District of New York, Mango Markets accuses Avraham Eisenberg of starting a “blatant and malicious” attack on its platform.
The exchange claims that Eisenberg manipulated the price of his utility token, Mango (MNGO), and then used “fraud and deception” to convert around $114 million from Mango Markets customers into his own accounts.
Eisenberg, who runs a trading company and describes himself as a “digital art dealer”, went public the week after the incident, claiming that he was the mastermind behind what he described as a “legal” exploit by Mango. .
Eisenberg argued that he was involved with a trading team that had a highly profitable strategy. The scheme left the decentralized exchange insolvent and users were unable to access their funds.
Says Mango Markets in the new court filing,
“In the days following his attack, the defendant planned to protect his ill-gotten gains through other illegal means. He forced Mango DAO [decentralized autonomous organization] to enter into an unenforceable settlement agreement, under duress, that was intended to release depositors’ claims against him and prevent further criminal investigation.
Following Mango DAO’s vote on Defendant’s ultimatum, Defendant returned approximately $67 million of the money it illegally converted. He retained, and continues to retain, the rest. Since the attack, the defendant has continued to conspire to attack Mango Markets further, in public, and has used the converted funds to attack other cryptocurrency protocols as well.”
Mango Markets seeks compensatory, incidental, and consequential damages.
Earlier this month, the US Commodity Futures Trading Commission (CFTC) filed market manipulation charges against Eisenberg. He was also arrested by the Department of Justice (DOJ) in Puerto Rico in late December on charges of fraud and commodity tampering.
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