Avraham Eisenberg, a decentralized finance (DeFi) trader, has been accused by Mango Labs, the Solana-based decentralized exchange (DEX), of exploiting a vulnerability in their platform and profiting to the detriment of Mango Markets and its users.
Eisenberg allegedly funded an account with $5.5 million USDC collateral from FTX and created a 480 million MNGO PERP (perpetual future) position and counter-traded himself on another account, manipulating the price of MNGO and increasing the value of his collateral.
It is believed that Eisenberg illegally profited from this “profitable trading strategy” to the tune of $110 million. In response, the Securities Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) have charged Eisenberg with securities manipulation and fraud, respectively.
The Commodities Future Trading Commission (CFTC) has also accused him of violating the country’s commodities regulations. Mango Market has since sued Eisenberg, seeking to recover the funds they consider stolen. The case is ongoing and the outcome is yet to be determined.
