• A US Magistrate Judge has ruled to detain the exploiter of DeFi protocol Mango Markets before the trial can be concluded.
• Avraham Eisenberg, the Mango Markets exploiter, was arrested on Dec. 28 on fraud charges and is being held in custody until the case has concluded or until he is released as a result of a bail review.
• Eisenberg was allegedly involved in a scheme that involved the deliberate and artificial manipulation of the price of perpetual futures contracts, leading to the illegally withdrawing of $110 million of users’ funds.
Avraham Eisenberg, the exploiter of the DeFi protocol Mango Markets, has been arrested and is awaiting a trial. On Dec. 28, the US District Court of Puerto Rico arrested Eisenberg on fraud charges. Despite claiming that his attack on the cryptocurrency exchange was a legal open market action, he is now facing charges of market manipulation and fraud.
The US Magistrate Judge, Bruce McGiverin, has recently issued a detention order for Eisenberg, stating that he needed to be detained for several reasons. His release is not subject to any condition that will reasonably guarantee his appearance as required. In addition, the court mentioned Eisenberg facing a lengthy prison sentence if convicted, having significant family or other ties outside of the US, and having an unverified background.
The investigation into the case revealed that Eisenberg’s scheme involved the deliberate and artificial manipulation of the price of perpetual futures contracts. This manipulation, along with other manipulative and fraudulent practices, ultimately led to the illegally withdrawing of $110 million of users’ funds.
The case has yet to be concluded, and Eisenberg will remain in custody until the trial is finished or until he is released as a result of a bail review. If found guilty, he could be facing a lengthy prison sentence. It remains to be seen what will happen next in the Mango Markets exploitation saga.