On Monday, the U.S. Commodity Futures Trading Commission (CFTC) filed charges of manipulation against Avraham Eisenberg, the exploiter of Mango Markets. These charges come just a few short weeks after Eisenberg, aka Mango Avi, was arrested by the United States Department of Justice (DOJ) on charges that were particularly similar.
CFTC Sues Mango Markets Exploiter
According to a lawsuit filed on Monday, Eisenberg engaged in “manipulation of a swap” for his part in abusing Mango Markets in October and allegedly used a deceitful method to influence the price of the MNGO token through fraudulent swaps. After a trader used numerous accounts to buy, sell, and hedge the price of the MNGO token, more than $100 million in cryptocurrency was stolen from the decentralized exchange.
According to the recent complaint, CFTC’s exact words were:
A manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets.
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Eisenberg’s Trades Under Scanner
Eisenberg had claimed that he and his team had orchestrated an extremely profitable trading strategy and later would give some of the money back to Mango. However, his tweets indicated that he felt the activities were within the law and completely legal. But, around two months later, he was detained by the Justice Department on allegations of market manipulation.
Eisenberg specifically managed to increase the value of the native MNGO crypto token relative to the stablecoin USDC by purchasing the small-cap token in bulk. As a result, its price increased by 1,300% in October. Eisenberg and his crew were subsequently able to utilize the inflated MNGO as collateral for additional USDC loans.
In the wake of FTX’s bankruptcy, the CFTC is coming under increasing amounts of scrutiny. The government organization and its respective commissioners were on board with FTX’s efforts to lobby Congress for a measure that would expand the body’s regulatory authority over the cryptocurrency market prior to the exchange’s demise.
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