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Mastermind Behind Mango Markets Exploit Ordered To Detention By District Court

Avraham Eisenberg, the individual behind the recent Mango Markets exploits, has been ordered to detention by the United States District Court for the District of Puerto Rico due to ties outside the U.S. and an unverified background.

Judge Bruce McGiverin made the decision to detain Eisenberg, who may face a lengthy prison sentence if he is convicted of fraud and market manipulation.

The court also stated that there are no conditions or combination of conditions that would reasonably assure Eisenberg's appearance as required.

Also Read: Meta Bets Go Bust As Digital NFT Land Prices Plummet – Are Investors Wasting Money?

A detention order, which can be issued at a bail hearing, requires the defendant to remain in custody until the case is finished or until they are released through a bail review.

Eisenberg, who was arrested on Dec. 28, maintains that his actions were a legal open market strategy and a "highly profitable trading technique."

On Oct. 15, Eisenberg took to social media to assert that the Mango Markets exploit was a legal act, stating that he was simply using the protocol as intended and that the exploit was a "highly profitable trading strategy."

On Oct. 11, Eisenberg exploited Mango Markets by manipulating the value of the platform's native token, (CRYPTO: MNGO), in order to artificially inflate its price relative to USD Coin (CRYPTO: USDC).

With the inflated collateral, Eisenberg and his team took out large loans, resulting in Mango's treasury losing approximately $110 million worth of various cryptocurrencies.

Mango began negotiations with Eisenberg for the return of the funds on Oct. 12, and by Oct. 15, Mango Markets confirmed that $67 million in various crypto assets had been returned.

Next: Fraud, Scams And Contagion Risk – FDIC Outlines Risks And Seeks 'Proposals' From Banks Dealing With Crypto

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