According to court documents, the DeFi trading platform Mango Marketsworth 110 million dollars cryptocurrency dumping crypto investor Avraham Eisenberg Monday He was arrested in Puerto Rico.
Cryptocurrency Scam Eisenberg Arrested in Puerto Rico
The self-identified game theorist acknowledged his role in draining Mango Markets’ treasury shortly after the incident in mid-October.
He has now become the first US citizen to face charges for his role in manipulating a decentralized finance (DeFi) trading platform.
Eisenberg faces charges of commodity fraud and commodity manipulation, according to a filing released Tuesday. The charges can carry penalties ranging from fines to imprisonment.
A statement signed by FBI Special Agent Brandon Racz alleges that Eisenberg “deliberately and knowingly” manipulated the sale of a commodity, namely futures contracts on the Mango markets.
“Eisenberg was involved in a scheme involving the deliberate and artificial manipulation of the price of perpetual futures contracts on a cryptocurrency exchange called Mango Markets, and other manipulative and deceptive devices and tricks.”
According to an unsigned complaint, Eisenberg Mango Markets‘s native token MNGO He manipulated the price of perpetuals contracts (a type of futures contract popular in the crypto markets) for
He sold himself large quantities of MNGO perpetuals contracts, thereby increasing the price of those contracts by 1,300% in less than an hour.
Eisenberg later borrowed against the value of his position and “withdrawn all cryptocurrency deposits on the Mango Markets platform.” Thus, he allegedly earned $110 million.
*Not investment advice.
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