Mango Labs has filed a lawsuit against renowned Mango Markets exploiter, Avraham M. Eisenberg. This is the fourth time Eisenberg has been charged or sued in connection with his attack on the Decentralized Finance (DeFi) protocol.
According to the filing, Eisenberg is expected to pay $47 million in damages including accrued interest from the time of the attack. He was accused of stealing $114 million worth of crypto from depositors by manipulating the price of the MNGO token. The price manipulation caused depositors harm including the inability to leverage those assets in Mango Markets and elsewhere.
Furthermore, Eisenberg planned to protect his illegal gains by coercing the Mango DAO to sign an agreement to end depositors’ claims against him and stop them from filing criminal charges against him. Following the Mango DAO vote on his ultimatum, he returned $67 million of the illegally converted funds and kept the rest for himself.
Since the incident, Eisenberg has continued to publicly plot further attacks on Mango Markets and other decentralized protocols. He even went on Twitter, to boast about his unlawful conduct, claiming that he was involved in a highly “profitable trading strategy”.
He was arrested following a criminal complaint filed against him by the United States Attorney’s Office for fleeing the country after his attack. Not only that, he was also sued by the Commodity Futures Trading Commission (CFTC) in two different class actions.
Meanwhile, last year saw a significant drop in revenue for some crypto firms as a result of malware attacks. An earlier report from Insidecrypto revealed that crypto attackers stole a staggering sum of about $3.5 billion in 2022 alone.
The Mango Markets Protocol
Mango Markets is a Solana-based decentralized exchange governed by a DAO that consists of holders of its native token, MNGO. The protocol offers a decentralized trading platform for cryptocurrency spot markets, perpetual contracts, and lending transactions.
Cryptocurrency investors have regarded the Solana blockchain as a strong competitor of the Ethereum network due to its high liquidity and low gas fees. Mango Markets recorded one of its highest sales in the Solana blockchain when it raised $70 million through its MNGO tokens sale.
The platform also provides trading tools such as stop-loss orders and margin trading for more advanced traders. Mango also offers an API for algorithmic trading and a mobile app for trading on the go.
