Prosecutors have linked Avraham “Avi” Eisenberg’s alleged $110 million abuse on the Solana decentralized exchange Mango Markets to a phony diamond ring scheme, as reported in an April 9 Inner City Press X report.
On October 11, 2022, United States Assistant Attorney Tian Huang charged Eisenberg with fraud and market manipulation, which caused a 1,000% surge in cryptocurrencycurrency prices in under 20 minutes.
According to Eisenberg’s defense, what he did was legitimate trading. Eisenberg put $13 million of his own money at risk in open market activities, according to his attorney Sanford Talkin, which were apparent to all.
The hack entailed inflating MNGO, the native token of Mango Markets, and then borrowing more than $110 million against it to empty the exchange’s treasury. Eisenberg still has to pay $47 million plus interest on the lawsuit, even if he returned $67 million.
The case centers on whether Eisenberg’s activities violated implicit loan agreements in decentralized finance (DeFi), and cryptocurrencycurrency attorney Gabriel Shapiro thinks the verdict will have an effect on the sector.
The case demonstrates the legal difficulties in DeFi and the possible effects on protocols and merchants. The decision might create guidelines for future transactions in the cryptocurrencycurrency market.
