The infamous Mango Markets exploit of 2022 shocked the industry as approximately $114 million vanished from the decentralized exchange. At the center of this significant event stands Avraham Eisenberg, a hacker whose actions have reverberated throughout the crypto community. However, justice for the victims of this exploit has been postponed, raising questions about the delay and the subsequent legal battles faced by Eisenberg. Let us delve into the details.

The Mango Markets Exploit:

On October 11, 2022, the Mango Markets decentralized exchange fell prey to one of the most substantial cryptocurrency hacks of the year. The exploit involved a clever manipulation of the protocol’s smart contract vulnerability, resulting in the theft of $114 million. Unveiled as the mastermind behind this audacious act, Avraham Eisenberg employed a strategic approach that led to his illegal gains.

Eisenberg’s Method:

Avraham Eisenberg executed his plan by creating two accounts on Mango Markets and depositing approximately $5 million worth of USDC (a popular stablecoin) into each account. Subsequently, he orchestrated a deceptive price manipulation strategy by artificially inflating the price of the Mango Markets native token, MNGO. Eisenberg utilized third-party exchanges to place sizable buy orders for MNGO at an unusually high market price, causing a significant surge in the token’s value on Mango Markets.

With the MNGO price artificially inflated, Eisenberg’s deposited collateral, initially converted to MNGO, experienced a substantial increase in value. This valuation allowed the hacker to secure massive loans from the Mango Markets platform, swiftly transferring the funds to external wallets across various platforms.

Legal Actions and Postponed Trial:

In December 2022, the US Department of Justice apprehended Avraham Eisenberg in Puerto Rico, charging him with fraud and market manipulation. The trial, initially scheduled for December 2023, has faced several setbacks. Eisenberg’s legal team recently argued for a continuance, highlighting the overwhelming volume of discovery provided by the US prosecutors and the need for ample time to analyze these documents.

Despite opposition from the plaintiff, the court ruled in favor of Eisenberg, postponing the trial to April 2024. Both the prosecution and Eisenberg’s legal representatives must submit a revised schedule for pretrial motions and submissions by November 7, 2023.

A Battle on Multiple Fronts:

Apart from the court trial, Avraham Eisenberg faces additional legal challenges. Following the exploit, Mango Markets entered into an agreement with Eisenberg, where he returned $67 million worth of the stolen funds but was allowed to retain $47 million. However, in January 2023, Mango Markets filed a lawsuit, asserting that the agreement had been coerced under duress, aiming to recover the remaining $47 million.

Furthermore, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have each filed lawsuits against Eisenberg, charging him with market price manipulation of MNGO.

The Mango Markets exploit orchestrated by Avraham Eisenberg shook the cryptocurrency industry, leaving victims and authorities grappling with the aftermath. The subsequent legal battles faced by Eisenberg, along with the postponed court trial, have raised concerns about the delayed justice for those impacted by this audacious hack. As April 2024 approaches, the crypto community eagerly awaits the resolution of this high-profile case, hoping for a verdict that reinstates faith in the security of decentralized exchanges.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.